To achieve our monetary policy goal of low, stable and predictable inflation at the 2 per cent target rate, our economy should operate at, or close to, its productive capacity. However, most advanced economies, including ours, have been running well below full capacity since the Great Recession of 2008–09 owing to a persistent deficiency in demand.
Financial exclusion is partly the result of the high costs of serving low income customers, especially in rural areas, and partly because demand from potentially bankable customers is also low. Consumer education can help to attract more economically active people into the formal banking system.