In addition, the lifting of  pandemic restrictions can be expected to generate temporary price pressures in re-opening sectors, in view of the recovery in demand for newly-unrestricted services and initial supply and labour market constraints in these sectors. These themes are illustrated in Chart 7.
The actions we have taken, including with our colleagues at the ECB, have been designed to ensure supportive financing conditions, enabling credit institutions to absorb losses and to support lending to businesses and households. Real-time data for the Irish economy point to a trough reached in April, and an increase in activity as the economy re-opens.