And this is again facilitated by the reduction in financial fragmentation, which tends to increase nominal rates while decreasing growth rates. Raising the potential Returning output to its potential is one part of the recovery story; but equally important is the level and trend of potential itself.
In addition, given the ongoing strength of monetary and credit growth in an environment of ample liquidity, a cross-check of the outcome of the economic analysis with that of the monetary analysis supports the assessment that upside risks to price stability prevail over the medium to long term.