Across the euro area, the economy is gradually reopening as vaccination coverage continues to expand. In Ireland, thanks to the public health and community response, we can see light at the end of the tunnel. We expect the Irish economy to recover strongly in the second half of the year but uncertainty regarding the evolution of the pandemic remains.
Of course, the impact of COVID-19 is not the first, and won’t be the last, shock to affect the euro area. As monetary policymakers, we at the Governing Council need to be aware of risks on the horizon, and ensure that our policy tools are ready when needed to minimise the fallout of downturns on households and businesses.