well as the very real challenges many people and businesses have faced. we may also see stress in some sectors given higher operating costs and shortages in labour supply. real financial pressures for some businesses will not become evident until the economy reopens fully and supports are fully unwound. and while encouraging, it is as yet unclear how much of the changes in the labour force will persist. and of course the aggregate picture doesn ’ t, to paraphrase robert f kennedy, give us an accurate measure of those things which make life worthwhile. 3 but overall, from what we can see today, the prospects for ireland ’ s economy appear bright. inflation let me turn to inflation. is it temporary? is it transitory? when asked this question, i often think about niels bohr the danish physicist who supposedly 2 / 5 bis central bankers'speeches said “ prediction is very difficult, especially about the future ”. i think this is especially true when we experience a global shock like the pandemic that has led to profound change in our communities, economies and societies. there are many things we know, like where price pressures are emanating from. and we have taken appropriate monetary policy decisions in response. but there are many things we do not know. not many of us would have imagined when doing our start - of - the - year reflections in january 2020 that we would be working from home and living with restrictions on many sectors of the economy for most of the next two years. so we do need to show some humility when making ( or attributing ) simplistic statements. the key question is what is driving inflationary dynamics and what can we reasonably expect in the short to medium term. having reached highs of 5 per cent in december, 4 inflation across the euro area is expected to remain elevated in the near term. we expect it to remain above 2 per cent for most of this year but our forecasts project it to settle below our 2 per cent target in 2023 and 2024. in ireland inflation also surged in recent months, reaching 5. 7 per cent ( hicp ) in the year to december. transport, housing and energy have been the main drivers, although some increase has been evident across most parts of the consumption basket. this inflation is not experienced equally across households. people on lower incomes are especially affected by rising energy and rents. distinguishing between broad - based changes in the general price level and idiosyncratic, temporary, relative price

er hub innovation in financial services : a regulator ’ s perspective - deputy governor ed sibley 29 november 2019 speech speech delivered at university college cork good morning ladies and gentlemen. i am delighted to be here today at university college cork ( ucc ) to discuss innovation in financial services. thanks to professors john o ’ halloran, philip o ’ reilly and thia hennessy for the invitation to be here today and talk with you. ucc plays a vital role in education, research and entrepreneurship, both locally here in munster and further afield. there is a thriving hub of innovative activity here, which contributes to and shapes wider ideas and practices. within cork itself, i know there is an ever growing ecosystem of collaboration between start - ups, larger firms, academia and government agencies all tying in together to advance innovation. innovation in financial services has the capacity to bring many benefits for consumers, the economy and society in general. it is essential to the effective functioning of a competitive economy. however, here is where a challenge lies for financial regulators. innovation is good, but not all innovations are good, and not all good innovations are done well. so regulators and supervisors need to : not get in the way of ‘ good ’ innovation ; seek to prevent or limit innovations that are detrimental to the goal of well functioning financial services and markets ; and ensure that the associated risks are well - managed. these are important topics for the central bank. so, today, i will cover : 1. the role of the central bank regarding innovation in financial services ; 2. the central bank ’ s approach to innovation ; 3. innovation in financial services ; and 4. foundations necessary to successful innovation in financial services. the role of the bank regarding innovation in financial services the central bank ’ s mission is to serve the public good by safeguarding monetary and financial stability and working to ensure that the financial system is operating in the best interests of consumers and the wider economy. the central bank ’ s aspiration is for a functioning financial services system that sustainably serves the needs of the economy and its consumers. this requires functioning and trustworthy financial markets and firms. it also requires that the financial system and firms operating within it are resilient – this resilience being a fundamental aspect of protecting consumers. as part of its wide mandate1 the central bank is responsible for the regulation and supervision of financial services firms. through this work, the central bank serves the public good by : 1. strengthening resilience of the financial system