BOJ’s New Natural Rate Estimate Won’t Alter Economists’ Views

The Bank of Japan’s new estimate for the neutral rate of interest, a key indicator showing how much room authorities have to lift rates, was little changed from a previous projection, and therefore won’t likely prompt economists to alter their views on the policy trajectory.

In a report released Friday, the BOJ estimated the range for the figure to be between minus 0.9% and plus 0.5%. The previous estimate ranged from minus 1% to 0.5%.