In April, the Bank of Canada shifted its estimate for neutral rate up 25 basis points- a reflection that the 'normal' of interest rates in the post-pandemic era is likely higher than the decade before. What exactly are ‘neutral’ rates and how did the Bank know to adjust them higher? After many decades of neutral rates moving lower, why is the pendulum swinging back?

On this episode of the 10-Minute Take, join RBC Economists Claire Fan and Carrie Freestone as they chat monetary policy and answer all of your burning questions around the ‘neutral’ rate of interest.