While a recession—two consecutive quarters of negative growth—remains the most likely outcome, the labour market is proving resilient and the central bank said it expects continued positive developments for employment.

Its economy contracted by 0.4 per cent in Q4 2022 and its industrial sector is beginning to recover while consumption is badly hit by high inflation.

Overall inflation in the country is likely to fall in March as high energy prices get knocked out of year earlier figures, even if price growth will remain uncomfortably high, a global newswire reported.

"That being said, the core rate is proving exceptionally persistent," the bank said. "It could even increase slightly towards the middle of the year."

Fibre2Fashion News Desk (DS)