Private sector investment has been weak. 8 In fact, the strongest movements in credit to corporates have occurred over the past two years, during which we have gradually raised rates. Meanwhile, the output gap did narrow – but not because growth had picked up. Rather, it was because potential growth had slipped lower.
2/8  BIS - Central bankers' speeches  However, let me emphasize here that over the years, there is, one key aspect in which the role of banks has become more and not less important, - inclusiveness of intermediation – both geographic as well demographic.