Our policy is neither commanded by calculations of an output gap, nor of a NAIRU [Non-Accelerating-Inflation-Rate-of-Unemployment], or of the computation of a theoretical neutral rate. We are guided by our own judgement of the risks to price stability based on our two-pillar strategy: our economic analysis and our monetary analysis.
In doing so we are not the prisoner of any kind of model, but rather we are keen on having as comprehensive as possible analysis in order to take the best decision in situations that are always very complex. At this stage the Council does not think that it is the time to consider increasing the previous estimate for potential growth of around 2-2.25%.