Neutral interest rates at pre-pandemic levels, Bank of Canada finds
Nominal neutral interest rates in both countries sit between 2.25% and 3.25%
Neutral interest rates in Canada and the US have both returned to their pre-pandemic levels, according to a Canadian central bank report.
Nominal neutral interest rates in both countries sit between 2.25% and 3.25%, the Bank of Canada estimates in its annual labour market benchmark report. The neutral interest rate is the monetary policy rate in which the economy is neither stimulated nor restricted.
The central bank said it looked at inequality, macroeconomic risk and government debt to calculate
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