The Neutral Rate Is Likely to Remain Very Low for Some Time Fourth, perhaps most salient for monetary policy, it appears increasingly clear that the neutral rate of interest remains considerably and persistently lower than it was before the crisis.
On the other hand, there is the danger of excessively relying on remittance flows. There is evidence to suggest that incentives for structural reforms may weaken as a result.3 From a payments point of view, remittances are cross-border P2P transactions. This implies that households need to have a reliable infrastructure at their disposal. In many cases, households will turn to non-cash systems.