Poor productivity growth creates inertia in both wage and price inflation and slows down the process by which the economy returns to its natural level of activity, thus making the task of monetary policy to ensure price stability more complicated.
On present indications, inflation is expected to be somewhat higher than we’d thought in November, in part because of the further depreciation since then, but it is still expected to remain consistent with the inflation target. 10  BIS central bankers’ speeches