Nevertheless, although there is evidence of a connection between low potential output growth and a low neutral rate, as pointed out by Hamilton and others, the relationship is not precisely estimated, which leaves considerable uncertainty about the magnitude of the effect.13 Finally, investors' risk sensitivity appears to have been altered by the experience of tail risks during the crisis, which could have a persistent depressing effect on the neutral rate.
I don’t agree that we are behind the curve. The measures we took in June and September resulted in a significant compression of loan spreads and yields, including in Portugal. They had a positive impact on financial conditions in general. The problem is that the volume of loans didn’t follow sufficiently. We have seen some improvement, but it is still too little.