And uncertainty around the outlook is particularly high, and likely to remain so over the coming months, linked as it is to the Russian war in Ukraine, spillover effects to energy markets, and the ability of households, businesses and the public nances to absorb higher costs. This morning I would like to discuss, rst, what these shocks mean for the economic outlook for Ireland.
Second, the monetary policy response that is underway, and third, the importance of considering the distributional impact of both shocks and our responses to them. Let me begin with the economic outlook. Following the easing of Covid-related restrictions, the domestic economy, in aggregate terms, recovered more rapidly than most economists could have predicted.