• For balance to be sustained need to see wage growth and productivity pick up
• Seeing some signs of investment demand and need to see more
• Expected to see real wage growth pick up but it hasn’t happened yet, though we still expect to see it
• Haven’t yet seen a positive turn in supply side and productivity growth is still low
• Economy is still catching up
• MPC doesn’t make forecasts on what we hope will happen
• We have not overstated potential for recovery, productivity estimates are modest
• Does not see gap with other countries closing, there’s no structural reasons for gap to persist