In underlying terms, inflation is expected to remain below 2 per cent over the next couple of years. Of course, there are other scenarios as well. On the optimistic side, the restrictions could be lifted more quickly, with the virus being contained.
In that case, a stronger recovery could be expected, particularly in light of the very large monetary and fiscal support that is in place. On the other hand, if the restrictions stay in place longer, or they have to be reimposed, the recovery will be delayed and interrupted. In that case, the loss of incomes and jobs would be even more pronounced.