Since July we have increased our policy rates by a total of 1.85 percentage points. The credibility of monetary policy in achieving price stability, and hence in anchoring inflation expectations, is critical to getting inflation under control. This means that we import both the rate actions and the credibility of monetary policy pursued by the ECB.
Currently, by most measures, inflation expectations remain well anchored in Denmark. In addition, higher interest rates will dampen demand and inflation. Risks are clearly to the downside for economic activity, but nevertheless, risks of rising inflation expectations remain, which I will turn to next.