This drag will largely offset the effects of rising investment. This is why we expect that the growth rate of potential output will remain fairly stable at around 2 per cent over the next three years. •  Real GDP growth is projected to increase from 1.6 per cent this year to 2.3 per cent next year and 2.6 per cent in 2015.
The exchange rate between two countries can be written as the sum of the policy rate path differential between two countries plus a risk premium. So even for households and firms that do not directly care about the policy rate path, they do care about long-term bond yields and exchange rates that reflect this path. -6monetary policy.