The introduction of a two-tier system for the remuneration of banks’ reserves in excess of the minimum requirement, which took place without generating tensions, is intended to preserve banks’ ability to provide credit to firms and households.
In other words, we should expect our growth rate to average about 3 percent annually over the course of our usual economic cycles, with outcomes for any given year ranging from about 1 percent at the trough to, perhaps, 4 or 5 percent at the peak.