So, unlike the situation in late 2014 and early 2015, when inflation expectations fell sharply across the population, and when we launched the asset purchase programme, today households are much less sceptical about the future. This raises two important questions. The first is what happens to inflation if financial market participants and households hold diverging views on the future direction of inflation.
At this juncture, it is imperative that all parties concerned meet their responsibilities and that second-round effects on price-setting, on the one hand, and on wages, on the other hand, stemming from current inflation rates be avoided.