Competing as a Strong and Independent Portuguese Bank slide image

Competing as a Strong and Independent Portuguese Bank

Macroeconomic environment Macroeconomic environment Impacts from the war in Ukraine, through higher inflation and interest rates, should be mitigated by policy measures supporting liquidity and income, and limiting the rise in energy prices. Headline and core inflation rate (CPI, % YoY) 10 September 8 Energy and food CPI Inflation, Portugal and Euro Area (CPI, % YoY) 40.7 9.3 September CPI inflation rose from 3.3% to 9.3% YoY in 9M 2022. Producer prices were up by 19.6% YoY in September. The impact from higher inflation should be mitigated by: I. Direct income transfers to households; temporary reduction of electricity VAT from 13% to 6%; tax measures increasing household liquidity in the short term (e.g. lower tax withholding rates); 2% cap in rent increases; temporary possibility of transition to the regulated gas market; freeze in public transportation prices and tariffs; etc. II. A price cap mechanism, decoupling electricity prices from gas prices. III. €3 bn programme to mitigate the effect of the rise in electricity and gas costs for firms (estimated reductions of 30%-31% in the electricity bill and 23%-42% in the gas bill vs. costs projected for 2023). 64 2 0 -2 55 35 Sources: INE, OE 2023, novobanco. novobanco Total 6.9 Core 2008 2010 2012 2014 2016 2018 2020 2022 Industrial producer price index 95 September 75 (% YoY) Headline Energy 15 -5 -25 2011 2013 2015 2017 2019 2021 22.2 16.9 12.7 Euro Area Portugal Euro Area Portugal Energy Food Households' savings rate (4Q MA, % of disposable income) 15 13 11 34.9 9 19.6 7 пил 5.9% 5 3 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 46
View entire presentation