Ladies and Gentlemen, To sum up: due to the prolonged pervasive uncertainty, we expect a period of slower growth – but no recession. Inflation is projected to remain subdued. That’s why monetary policy will remain accommodative for an extended period of time. Moreover, a strategy review is an opportunity to enhance common understanding and consistent communication on monetary policy.
We see that both pillars show a lot of positive developments. There is resilience in output, and there is reduction of slack in the economy and the labor market. But overall there is still slack in the system. Then we see this is happening in an environment of abnormally low inflation.