Third, demographics – more precisely, the assumption that dwindling labour supply will continue to exert upward pressure on wages. All these factors could turn out to be inflationary over the coming years. That is another reason why the Eurosystem must remain vigilant in this regard and ensure that inflation expectations remain well anchored around 2%. 4.
Résumé Ladies and Gentlemen, Gita Gopinath, the IMF's First Deputy Managing Director, has summed up the task for central bankers neatly2: "Monetary policy should remain data dependent, be well communicated, and ensure that inflation expectations remain anchored." I could not agree more. And having a compass of that kind is all the more important in times of elevated uncertainty.