- Inflation elevated for longer than thought
- Inflation rise is due to energy
- Economy hurt less by pandemic
- Growth subdued in Q1
- Shortages are restraining activity and remained a headwind
- Bottlenecks may be starting to ease but may persist for some time
- Inflation increased to 5.1% y/y in January and is likely to remain high in the near term
- The direct impact of energy accounted for half of the rise in January
- Wage growth is muted
- Risks to the outlook are broadly balanced over medium term
- Upside risks around household spending
- Downside risks include geopolitical tensions and persistently high cost of energy
- Inflation risks are tilted to the upside, particularly in the near term
The euro has made some decent headway during her opening statement, rising to 1.1319.