The prime minister and treasurer appear at odds over the direction of interest rates, sending contradictory messages to borrowers.
Minutes from the central bank's July board meeting this week suggest the official cash rate's new normal level should be around 3.5 per cent - compared with its current record low of 1.5 per cent.
The Reserve Bank's assessment of a "neutral" cash rate is based on stable inflation and the economy growing at around three per cent.
Prime Minister Malcolm Turnbull on Thursday said the central bank was sending a prudent signal about future interest rate rises.
"They are not saying they are going to do that tomorrow," the prime minister assured Neil Mitchell on radio 3AW.
"But I think they are sending a signal, which is probably prudent, which is to say ... rates are more likely to go up than go down."
Borrowers should be aware of that, Mr Turnbull warned.
But hours later, Treasurer Scott Morrison told listeners of the same radio station otherwise.
"People should not be reading too much into this," he said.
"These natural rates are the sorts of thing that are discussed at the edge of the blanket at the economist picnic.
"I wouldn't take that as a signal about where rates are heading. That's not what they're intended to be suggesting."
Financial markets are betting on a 0.25 per cent rise in the cash rate to 1.75 per cent in the middle of next year.
