This does not mean, however, that interest rates could or should not be used in combination with macroprudential tools should the need arise. The Bank’s experience during the pre-crisis period, when we did not have a focused macroprudential approach, is instructive.
During the period 2003–2006, the economy was growing at rates above potential, with an average growth rate of around 5,5 per cent, at a time when the potential growth rate was estimated to have been around 4 per cent.