On the demand side, we’ll be keeping a close eye on how global developments and commodity prices affect our exports and business investment as well as how this translates into pricing decisions. As higher inflation and interest rates constrain household budgets, consumer spending should moderate in both goods and services.
To this end, fiscal rules will be tightened further at the EU level, and new rules will be introduced nationally. The UK has, unfortunately, not agreed to the fiscal compact. However, I appreciate that the Irish voters have given their clear “yes”.