The upshot is that, if we were to remain on the growth and inflation trajectory we projected in December, we would lose several more years in the convergence of inflation towards our aim and risk further negatively affecting inflation expectations. This clearly called for action, as reflected in the additional support we decided on in December.
Boosting demand is also necessary to reduce hysteresis risks after the pandemic. The pandemic may well have caused scarring, especially for low-skilled workers. [7] Lower business innovation and investment might also have scarred productivity. [8]  9/19  Policy should not accept hysteresis as a reality which imposes new supply constraints, but rather explicitly set out to test those constraints.