However, given the high level of uncertainty, adjustments should be gradual. In my view, we must stay alert with respect to upside risks to price stability over the medium term. There is less and less of a concern that a premature monetary policy normalisation could plunge the economy back into the low inflation setting of the previous years.
Instead, I see that the risk of acting too late is increasing notably. Given the extraordinarily high uncertainty surrounding the future path of inflation, we should not delay the exit from the very 5/7  BIS central bankers' speeches  accommodative monetary policy, since a less expansionary monetary policy stance provides the most flexibility.