By the fourth quarter, and hopefully for the rest of 2024, inflation is expected to approach the low end of the target range due to base effects. What does this mean for us? Of course, our monetary settings will continue to be based on and be guided by data.
The only way it can grow out of the problem is by gaining competitiveness against other European economies via domestic deflation, which will be a difficult and lengthy process. A very large fiscal consolidation is an unavoidable part of this path.