This does not make the Reserve Bank popular, but facts are facts. We have gotten ourselves back in the trap we escaped in the mid-1990s. 20 For a discussion, see Adair Turner, Between debt and the devil, Princeton, NJ: Princeton University Press, 2016.
But weak wage growth and the past appreciation of the euro mean that price pressures will likely remain subdued for some time. There is still some way to go before the fallout from the pandemic on inflation is eliminated. As the economy recovers, supported by our monetary policy measures, we expect inflation to rise over the medium term, although remaining below our target.