Australia c.bank says won't quantify a neutral rate

Published: 05 Nov 2009 01:31:24 PST

SYDNEY, Nov 5 - The head of Australia's central bank said on Thursday that it would be dangerous to put a figure on the notion of a neutral level for official cash rates, but added that such a rate was higher than the current level.

"They are dangerous to put a precise figure on...," Reserve Bank of Australia (RBA) Governor Glenn Stevens told a dinner when asked what a neutral rate would be for Australia. Earlier this week the central bank raised its key cash rate 25 basis points to 3.5 percent, the second hike in as many months, saying it was prudent to wind back stimulus given the surprising strength of the economy.