However, even if the potential growth rate is  BIS central bankers’ speeches  3  1 percent, if the inflation rate is 0 percent, the room to reduce the interest rate amounts to only 1 percent as the level of the neutral interest rate is 1 percent.
In the second quarter of this year, the country grew by 7.0 percent, its fastest since the third quarter of 2013. Quite notably also, there has been a resurgence in manufacturing in recent periods, and domestic tourism has also been on the rise, creating a broader base for economic growth. Moreover, inflation has been benign and inflation expectations continue to be well-anchored.