Global Neutral Rate Estimates Are Starting to Inch Higher

Global Neutral Rate Estimates Are Starting to Inch Higher

(Bloomberg) -- Imagine an economy operating at full capacity: What borrowing costs would keep it humming along on trend? That’s what estimates of the neutral rate of interest aim to reveal. Bloomberg Economics replicated a new model of U.S. rates devised by Federal Reserve economist John Roberts and extended it to four other big economies: There’s now tentative evidence that global 10-year neutral rates are beginning to rise.

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