• There are some near-term risks related to omicron
  • But it is not a factor that will influence activity levels for the year
  • We think that inflation will fall “quite a bit” later this year
  • Rather than focus month by month, ECB has clear vision of direction i.e. inflation will fall later this year
  • So far, do not see a big response in wages on inflation
  • Less likely to see a scenario where inflation is persistent, requiring serious tightening of policy
  • Full interview