Third, our decision in December last year to reinvest flexibly under the PEPP provides a strong mechanism to preserve the transmission of monetary policy in the event of severe and selffulfilling market dislocations that would jeopardise the achievement of our mandate. Net purchases under the PEPP could also be resumed, if necessary, to counter renewed negative shocks related to the pandemic.
Hence, we stand ready to counter severe market dislocations that lead to fragmentation, while our monetary policy stance is guided by our primary objective of maintaining price stability. Conclusion Let me conclude. The inflation outlook has firmed since the start of the year. Inflationary pressures have broadened and have become more persistent.