The Bank estimates that the potential growth rate has recovered to the 1.5-2 percent range recently, from its previous estimate of approximately 1 percent. When considering the impact of a rise in the potential growth rate on the conduct of monetary policy, the important point is to assess how such a rise affects aggregate supply and demand and hence prices.
Thus, those keeping track of developments in the banking community will realize that the AIG Philam Savings Bank is the latest outcome in a series of mergers that have been taking place as our banks gear up for increasing competition.