The uncertainty around potential output remains high because it is not clear how much productive capacity will ultimately be rebuilt as the economy strengthens. In terms of inflation, we project it will average 2 per cent in 2017, as the output gap gradually closes. Our judgment about the inflation process is supported by two staff papers published today.
There also a mark positive in the microstructure of domestic foreign exchange market. Interbank forex liquidity is now easier with a greater interbank trading volume in the range of USD 1,5–1,8 billion a day, compared to only USD 200–500 million average during mid-2013 (Graph 5).