Australia's central bank says neutral rate at least 2.5%

SYDNEY: Australia's top central banker on Thursday said interest rates were closer to neutral levels after a run of hikes, but there was much uncertainty about how much further they might have to rise to bring demand back into line with supply.

Answering questions after a policy speech, Reserve Bank of Australia (RBA) Governor Philip Lowe said the neutral level - one that neither stimulates nor retards growth - was at least 2.5%. Rates are currently at 2.35% having been lifted by 225 basis points in just five months.