The New Neutral is a long-term global reality

Rob Mead | PIMCO | 19 February 2019 | 0.25 CE

Since 2009, the New Normal achieved traction as an economic concept. In April 2013, the "New Neutral" was coined, defining the impact on interest rates in this New Normal world. Since the GFC, the Fed was one of the only central banks to commence a hiking cycle, fast observing, as expected, that higher policy rates impact the economy more quickly. Locally, the RBA moved back to a neutral stance despite 1.5% being well below Austra...