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Macrovoices From Turku: 3.Neutral Interest Rates
By Inderes
Macrovoices from Turku - hot topics from the macroeconomic environment explained in a few minutes and an easy way. Join us and keep yourself posted! Episode 3. Neutral interest rates
The era of zero rates is over for now, but is the monetary cycle restrictive or accomodative? The neutral rate is now higher than it was during the covid-pandemic: In the US (Fed) it is a bit over 2 %, in the Euro zone around 1 %.
Contents:
00:00 Introduction
00:30 Topic of the day
00:46 Is the monetary cycle restricitve or not?
00:53 Neutral interest rates: definition
01:22 Factors affecting the neutral interest rate
02:27 Higher level expected