Indeed, over time, we have adjusted our models so that they could relate even more to the unique circumstances of the COVID-19 pandemic. Bank of Canada economists have increasingly been drawing on novel sources of data to get a sense of what is happening on the ground. Real-time data have been especially valuable because the situation has been changing so rapidly.
Indeed, they ensure that financial conditions will remain very favourable, supporting the euro area expansion, the ongoing build-up of domestic price pressures and, thus, headline inflation developments over the medium term. At the same time, we remain alert in the wake of mounting global uncertainties.