It means house prices still have another 15 per cent or so to slide before finding some kind of equilibrium level.

We're forecasting growth to be broadly flat next year and then reach an equilibrium level where they grow in line with earnings at around 3% to 3.5% a year.

But he said the central bank would allow the market to play a greater role in setting the exchange rate 'at an adaptive and equilibrium level'.

It stimulates the aggregate demand and thereby increases the equilibrium level of income and spending.

At this low stable equilibrium level, both the rate of investment and saving are low.