Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I appreciate that. My time is limited so I will just make a couple of points. One of the most worrying impacts regarding this year is that it is not a blip. It is not short term. The ESRI is projecting 5% inflation for 2023. Dr. Cassidy has said that he expects a higher rate of inflation. That means what is happening now will be baked in and will get worse next year, which is problematic for low- and middle-income households in particular.

On the positive side, the Exchequer and the economy are going stronger. The ESRI has projected an increase and that we will be in surplus by the end of the year. In its quarterly bulletin, the Central Bank has projected an improvement in excess of €4 billion since the budget last year. I am not sure if the Central Bank is still in the same space as the ESRI. Does Dr. Cassidy believe there is scope for further targeted interventions to support those who will be hardest hit as a result of the high levels of inflation?

Where does Dr. Cassidy see the European Central Bank, ECB, response going in regard to this? Does he see the ECB looking at interest rate increases in the short to medium term? Does he see the ECB shifting monetary policy, perhaps as a result of the invasion of Ukraine, or are we still looking at supply-side problems, the mismatch between supply and demand, and that it is more likely to result in no change in policy from the ECB in the short term?