1 00:00:00,000 --> 00:00:03,000 Brussels Live Transcribed and translated by AI 2 00:00:00,897 --> 00:00:07,285 Good afternoon, and welcome to our press conference, with President Lagarde, and 3 00:00:07,414 --> 00:00:11,765 Vice President Vučić. My name is Wolfgang Preussel. 4 00:00:11,817 --> 00:00:15,537 As always, we are joined by journalists who are connected online; 5 00:00:15,585 --> 00:00:19,162 if they ask a question, I would like to ask them to turn on their cameras and 6 00:00:19,250 --> 00:00:22,917 microphones. And with that, I hand over to you, President Lagarde. 7 00:00:23,877 --> 00:00:29,418 Thank you very much, Wolfgang, and good afternoon, good day to all of you. 8 00:00:29,517 --> 00:00:33,343 The Vice President and I welcome you to our press conference. 9 00:00:33,417 --> 00:00:38,584 The Governing Council today decided to keep the three key ECB interest rates 10 00:00:38,753 --> 00:00:43,417 unchanged. Energy prices have continued to rise. 11 00:00:43,557 --> 00:00:49,147 Posing upside risks to the inflation outlook and downside risks to the growth 12 00:00:49,254 --> 00:00:55,577 outlook. While the full effects of the energy shock are still unfolding, underlying 13 00:00:55,627 --> 00:01:01,786 inflation has remained broadly stable so far, and wages do not show a material 14 00:01:01,857 --> 00:01:08,100 response at this stage. The increased magnitude and duration of the energy shock, as 15 00:01:08,171 --> 00:01:14,150 well as the implications for indirect and second-round effects, are likely to drive 16 00:01:14,219 --> 00:01:21,062 up inflation and lower growth. Financing conditions have tightened since our last 17 00:01:21,140 --> 00:01:25,730 meeting. Which is likely to weigh on inflation and growth. 18 00:01:25,977 --> 00:01:31,754 We are committed to setting monetary policy to ensure that inflation stabilizes at 19 00:01:31,857 --> 00:01:39,201 our 2% target in the medium term. We remain well-positioned to navigate the current 20 00:01:39,264 --> 00:01:44,464 elevated uncertainty. We will follow a data-dependent and meeting-by-meeting 21 00:01:44,517 --> 00:01:49,145 approach to determining the appropriate monetary policy stance. 22 00:01:49,257 --> 00:01:53,780 In particular, our interest rate decisions will be based on our assessment of the 23 00:01:53,827 --> 00:01:58,603 inflation outlook and the risks surrounding it, in light of the incoming economic 24 00:01:58,683 --> 00:02:03,997 and financial data, as well as the dynamics of underlying inflation and the strength 25 00:02:04,059 --> 00:02:09,668 of monetary policy transmission. We are not pre-committing to a particular rate 26 00:02:09,821 --> 00:02:16,137 path. The decisions taken today are set out in a press release that is available on 27 00:02:16,257 --> 00:02:21,517 our website. And I will now outline in more detail how we see the economy and 28 00:02:21,590 --> 00:02:26,467 inflation developing and will then explain our assessment of financial and monetary 29 00:02:26,517 --> 00:02:34,427 conditions. The incoming data suggest that the euro area economy continued to expand 30 00:02:34,485 --> 00:02:40,637 in the third quarter of the year. Services have recovered, after weakening at the 31 00:02:40,687 --> 00:02:47,410 start of the Middle East conflict. Manufacturing, digital services, and exports are 32 00:02:47,487 --> 00:02:52,030 benefiting from AR-related business investment. 33 00:02:52,137 --> 00:02:56,277 Government spending on infrastructure and defense is also supporting activity. 34 00:02:57,537 --> 00:03:03,383 These factors should continue to underpin growth in the near term. 35 00:03:03,537 --> 00:03:10,236 At the same time, renewed energy price increases have hit consumer confidence and 36 00:03:10,317 --> 00:03:14,623 higher financing costs are likely to weigh on growth. 37 00:03:14,757 --> 00:03:19,448 The unemployment rate remained at 6.4% in August. 38 00:03:19,617 --> 00:03:26,547 Growth in employment and the labor force remains subdued, while productivity has 39 00:03:26,649 --> 00:03:32,105 gradually picked up. Over the medium term, a recovery in confidence and real incomes 40 00:03:32,162 --> 00:03:37,660 driven by gradually declining energy prices and a robust labor market should bolster 41 00:03:37,737 --> 00:03:44,340 domestic demand. Investment in AI-related activities and government spending on 42 00:03:44,397 --> 00:03:50,478 infrastructure and defense should also continue to support growth. 43 00:03:50,577 --> 00:03:56,593 Export growth should pick up on the back of strengthening foreign demand. 44 00:03:56,697 --> 00:04:02,277 Higher potential growth requires structural reforms and has to be underpinned by 45 00:04:02,337 --> 00:04:09,966 sound public finances. Fiscal sustainability is a crucial anchor for broader 46 00:04:10,043 --> 00:04:16,811 economic stability. Fiscal responses to the energy shock should be temporary 47 00:04:16,888 --> 00:04:23,445 targeted and tailored. Simplifying and harmonizing rules across the EU's single 48 00:04:23,527 --> 00:04:28,403 market, accelerating the energy transition, and completing the savings and 49 00:04:28,466 --> 00:04:33,477 investment union are key building blocks to make our economy more dynamic and 50 00:04:33,537 --> 00:04:39,839 resilient. As the process for agreeing on the legal framework for the digital euro 51 00:04:39,897 --> 00:04:45,142 moves into its final stage, we reiterate the importance of reaching agreement on the 52 00:04:45,212 --> 00:04:51,432 single currency package as quickly as possible. 53 00:04:51,597 --> 00:04:56,604 Inflation rose to 3.8% in September, from 3. 54 00:04:56,697 --> 00:05:03,353 2% in August. Energy price inflation increased markedly, to 18. 55 00:05:03,477 --> 00:05:13,041 9%, from 14.3% in August. Diesel and petrol prices reached new peaks in September, 56 00:05:13,137 --> 00:05:17,237 in part reflecting elevated refining margins. 57 00:05:17,457 --> 00:05:21,335 Inflation excluding energy increased to 2. 58 00:05:21,417 --> 00:05:31,613 3% in September, from 2.1% in August. Food price inflation increased to 1.3%, from 59 00:05:31,797 --> 00:05:40,917 1. 1%. Services inflation increased to 3.2% in September, from 3% in August. 60 00:05:41,337 --> 00:05:45,730 While goods inflation declined to 1.1%, from 1. 61 00:05:45,897 --> 00:05:47,097 2%. 62 00:05:48,777 --> 00:05:54,547 Indicators of underlying inflation have remained broadly stable. 63 00:05:54,657 --> 00:05:59,888 Although the early stages of the pricing chain point to upward pressures. 64 00:05:59,997 --> 00:06:06,347 Wage pressures remain moderate, compensation per employee grew by 3. 65 00:06:06,477 --> 00:06:12,731 3% in the second quarter, down from 3. 6% in the first quarter. 66 00:06:12,837 --> 00:06:18,743 While rising productivity has helped contain the growth of unit labor costs. 67 00:06:19,017 --> 00:06:24,791 Our forward-looking wage tracker suggests that negotiated wage growth will fluctuate 68 00:06:24,865 --> 00:06:35,854 between 2. 5% and 2.8% in the remaining month of 2026, and average 2.6% in the first 69 00:06:35,982 --> 00:06:44,048 three quarters of 2027. Inflation expectations over shorter horizons have risen, but 70 00:06:44,112 --> 00:06:50,311 most measures of longer-term inflation expectations stand at around 2%, supporting 71 00:06:50,397 --> 00:06:56,286 the stabilization of inflation around target in the medium term. 72 00:06:56,397 --> 00:06:59,757 Energy prices have increased, beyond the baseline. 73 00:07:02,217 --> 00:07:07,077 Beyond the baseline path foreseen in the September ECB staff projections. 74 00:07:08,397 --> 00:07:13,826 This is likely to raise inflation further in the near term, and keep headline 75 00:07:13,907 --> 00:07:19,385 inflation well above target over the coming quarters. 76 00:07:19,497 --> 00:07:24,666 Thereafter, declining energy inflation together with the effects of higher interest 77 00:07:24,717 --> 00:07:30,938 rates should support the return of inflation to target. 78 00:07:31,077 --> 00:07:35,723 The risks to the growth outlook are to the downside. 79 00:07:35,817 --> 00:07:39,584 This is due in particular to the Middle East conflict and recent developments in 80 00:07:39,633 --> 00:07:46,199 Russia's unjustified war against Ukraine. Continued disruption of energy supplies 81 00:07:46,257 --> 00:07:52,509 could cause energy prices to rise further and for longer than currently expected. 82 00:07:52,617 --> 00:07:58,192 This would weigh on real incomes, spending, and investment. 83 00:07:58,317 --> 00:08:03,979 A worsening of global financial market sentiment, or intensifying spillovers in 84 00:08:04,041 --> 00:08:10,928 global bond markets, could tighten financing conditions and thereby dampen demand. 85 00:08:11,037 --> 00:08:16,274 Fiscal uncertainty, may also further tighten financing conditions and weaken 86 00:08:16,342 --> 00:08:21,375 confidence, thereby lowering consumption and investment. 87 00:08:21,477 --> 00:08:26,763 A resurgence of trade tensions between major economies could further disrupt supply 88 00:08:26,854 --> 00:08:32,779 chains, reduce exports, and weaken consumption and investment. 89 00:08:32,877 --> 00:08:38,610 By contrast, growth could turn out to be higher, if the economy and energy markets 90 00:08:38,672 --> 00:08:43,790 were to adapt more quickly than expected to the disruption caused by the ongoing 91 00:08:43,857 --> 00:08:50,060 conflicts or if these conflicts were resolved sustainably. 92 00:08:50,217 --> 00:08:54,472 Moreover, the adoption of new technologies by euroarea firms and governments 93 00:08:54,537 --> 00:08:59,283 spending on infrastructure and defense, as well as reforms to enhance productivity 94 00:08:59,337 --> 00:09:06,612 and complete the EU's single market, may drive up growth by more than expected. 95 00:09:06,717 --> 00:09:11,457 The risks to the inflation outlook are to the upside. 96 00:09:11,577 --> 00:09:15,297 This is due in particular to the Middle East conflict and recent developments in 97 00:09:15,345 --> 00:09:21,713 Russia's unjustified war against Ukraine. The energy shock could intensify further, 98 00:09:21,781 --> 00:09:28,875 and its effects on other prices and wages could be stronger than currently expected. 99 00:09:28,977 --> 00:09:35,187 Gas prices, in particular, could increase if supplies disrupted further or an 100 00:09:35,337 --> 00:09:40,665 unusual cold winter coincides with low storage levels. 101 00:09:40,797 --> 00:09:46,468 The longer energy prices stay high, the more likely they are to drive up broader 102 00:09:46,545 --> 00:09:47,745 inflation, through 103 00:09:47,937 --> 00:09:55,333 indirect and second-round effects. Renewed trade tensions could give rise to more 104 00:09:55,399 --> 00:10:01,377 fragmented global supply chains, curtail the supply of critical raw materials, and 105 00:10:01,437 --> 00:10:05,747 worsen capacity constraints in the euroarea economy. 106 00:10:05,877 --> 00:10:12,016 Extreme weather events, potentially reinforced by intensifying El Niño conditions, 107 00:10:12,107 --> 00:10:18,166 and the unfolding climate and nature crisis, more broadly, could drive up food 108 00:10:18,224 --> 00:10:19,917 prices by more than expected. 109 00:10:21,837 --> 00:10:27,657 By contrast, inflation could turn out to be lower if ongoing geopolitical conflicts 110 00:10:27,717 --> 00:10:33,869 were resolved sustainably, or if indirect or second-round effects from higher energy 111 00:10:33,955 --> 00:10:36,957 prices proved less pronounced than anticipated. 112 00:10:38,877 --> 00:10:43,557 More volatile and risk-averse financial markets, together with higher long-term 113 00:10:43,617 --> 00:10:51,578 interest rates, could weigh on demand, and thereby lower inflation as well. 114 00:10:51,717 --> 00:10:53,037 Financial conditions now. 115 00:10:53,577 --> 00:10:57,957 Financial conditions have tightened, since our previous meeting. 116 00:10:59,097 --> 00:11:03,477 Interest rates have broadly moved up, while stock prices have fallen. 117 00:11:04,917 --> 00:11:08,671 The cost of market-based debt for firms rose to 4. 118 00:11:08,757 --> 00:11:17,517 1% in August, from 4% in July, while bank lending rates for firms remained at 3.8%. 119 00:11:19,317 --> 00:11:24,417 Growth in bank lending to firms slowed to an annual rate of 4. 120 00:11:24,537 --> 00:11:28,677 2% in August and September, from 4.4% in July. 121 00:11:29,637 --> 00:11:34,017 While corporate bond issuance grew at an annual rate of 4. 122 00:11:34,137 --> 00:11:38,831 2% in September, up from 3.8% in August and 3. 123 00:11:38,937 --> 00:11:40,137 5% in July. 124 00:11:42,057 --> 00:11:48,331 Credit standards for loans to firms tightened in the third quarter, as reported in 125 00:11:48,396 --> 00:11:54,366 our latest bank lending survey, with banks citing concern about the economic risks 126 00:11:54,443 --> 00:11:55,677 faced by their customers. 127 00:11:57,657 --> 00:12:03,533 Despite higher financing needs for inventories, and working capital, corporate loan 128 00:12:03,610 --> 00:12:07,317 demand declined, reflecting in particular higher interest rates. 129 00:12:09,177 --> 00:12:13,649 Mortgage rates rose to 3.8% in August, from 3. 130 00:12:13,737 --> 00:12:20,517 5% in July, while mortgage lending growth edged down to 3% in September. 131 00:12:22,137 --> 00:12:27,218 Credit standards for mortgage lending were unchanged in the third quarter, whereas 132 00:12:27,293 --> 00:12:31,677 demand for mortgages declined substantially, given higher interest rates. 133 00:12:33,297 --> 00:12:37,968 So, in conclusion, the governing council today decided to keep the three key ECB 134 00:12:38,037 --> 00:12:39,237 interest rates unchanged. 135 00:12:40,497 --> 00:12:45,167 We are committed to setting monetary policy to ensure that inflation stabilizes at 136 00:12:45,222 --> 00:12:47,037 our 2% target in the medium term. 137 00:12:48,417 --> 00:12:53,009 We will follow a data-dependent and meeting-by-meeting approach to determining the 138 00:12:53,060 --> 00:12:54,837 appropriate monetary policy stance. 139 00:12:56,337 --> 00:13:01,076 Our interest rate decisions will be based on our assessment of the inflation outlook 140 00:13:01,137 --> 00:13:05,927 and the risks surrounding it, in light of the incoming economic and financial data, 141 00:13:05,997 --> 00:13:10,970 as well as the dynamics of underlying inflation and the strength of monetary policy 142 00:13:11,026 --> 00:13:12,226 transmission. 143 00:13:12,597 --> 00:13:15,237 We are not pre-committing to a particular rate path. 144 00:13:16,257 --> 00:13:21,124 And in any case, we stand ready to adjust all of our instruments within our mandate, 145 00:13:21,200 --> 00:13:26,493 to ensure that inflation stabilizes sustainably at our medium-term target, and to 146 00:13:26,560 --> 00:13:30,477 preserve the smooth functioning of monetary policy transmission. 147 00:13:31,857 --> 00:13:33,717 We are now ready to take your questions. 148 00:13:35,457 --> 00:13:38,054 First question goes to our neighbor, Vice President of CNBC. 149 00:13:38,097 --> 00:13:39,297 Please. 150 00:13:39,417 --> 00:13:42,420 Thank you very much. President Lagarde, I have two questions. 151 00:13:42,477 --> 00:13:48,623 One on monetary policy. The first one on monetary policy is that, for the first time 152 00:13:48,691 --> 00:13:53,617 in, I don't know, how long, the mentioning of second-round effects in your press 153 00:13:53,666 --> 00:13:59,386 release was quite striking. So does it also mean that the markets bought right to 154 00:13:59,441 --> 00:14:04,445 expect a rate hike in December, because clearly there is now a risk of second-round 155 00:14:04,516 --> 00:14:09,470 effects? Second question is, how do you marry your position, which was which you 156 00:14:09,561 --> 00:14:13,557 said I think it was spring this year, that the captain stays on the ship when there 157 00:14:13,597 --> 00:14:19,181 are clouds on the horizon, given that the euroarea is probably in a worse situation 158 00:14:19,252 --> 00:14:24,039 than in spring? Looking at France, looking at the inflation picture, and perhaps you 159 00:14:24,096 --> 00:14:26,397 can tell us more about your motivation. Thank you. 160 00:14:28,917 --> 00:14:31,145 Thank you very much for your two questions. 161 00:14:31,197 --> 00:14:36,332 And I would suggest that we deal, first and foremost, with the monetary policy 162 00:14:36,408 --> 00:14:41,731 statement and the monetary policy decision questions, and that if there are 163 00:14:41,787 --> 00:14:45,798 additional questions, in relation to me, for instance, that we keep that for the 164 00:14:45,859 --> 00:14:50,720 end, because the real order of business here is the monetary policy. 165 00:14:50,877 --> 00:14:56,573 So, your second question will I'll deal with it later in the press conference, if 166 00:14:56,636 --> 00:15:05,846 that's okay with you. So,. You are right that second-round effects and the risk of 167 00:15:05,913 --> 00:15:11,444 second-round effects is something that we have paid very special attention to. 168 00:15:11,517 --> 00:15:18,670 I think I said that in previous press conferences, as inflation rises, as the risk 169 00:15:18,897 --> 00:15:26,385 to inflation has increased, we pay special attention to the direct effect. 170 00:15:26,457 --> 00:15:28,743 We see it clearly, to the indirect effect. 171 00:15:28,797 --> 00:15:34,702 We have seen an increase of those indirect effects, and to the secondary effects. 172 00:15:34,797 --> 00:15:40,405 Which would require a particular policy decision. 173 00:15:40,557 --> 00:15:47,545 We are very attentive and, at this point in time, we are not seeing risk of 174 00:15:47,697 --> 00:15:53,235 second-round effects in addition to what is already included in the projections. 175 00:15:53,337 --> 00:15:57,097 So, if you will, the projections that were prepared in September did include the 176 00:15:57,156 --> 00:16:02,565 risk of second-round effects. So we are looking very attentively to that and for the 177 00:16:02,644 --> 00:16:07,400 for the moment, as I think we say very clearly in the monetary policy statement, we 178 00:16:07,473 --> 00:16:14,761 do not see material risk of second-round effect at the moment. 179 00:16:15,057 --> 00:16:19,860 But give me the opportunity because I deferred your second question to a bit later, 180 00:16:19,917 --> 00:16:24,477 to give you a little bit of flavor of the debate that we had. 181 00:16:25,077 --> 00:16:30,601 Because while we were very attentive to second-round effects, and in particular to 182 00:16:30,669 --> 00:16:37,820 the evolution of wages, to the wage tracker, to the compensation per employee 183 00:16:37,883 --> 00:16:43,561 projections, to every instrument that we have to measure wages, in all sectors, 184 00:16:43,636 --> 00:16:49,306 including the opening position of unions in the coming collective bargaining 185 00:16:49,377 --> 00:16:54,289 bargaining agreement discussions, we have also looked at what has really 186 00:16:54,357 --> 00:16:57,842 significantly changed compared to last September. 187 00:16:57,957 --> 00:17:05,242 And the two key changes that we have seen is, first and foremost, the energy prices. 188 00:17:05,337 --> 00:17:12,085 And on that front, it's a combination of oil prices, but more importantly, petrol, 189 00:17:12,278 --> 00:17:16,257 fuel, gas, and of course refining margins. 190 00:17:16,317 --> 00:17:21,730 And that has increased significantly. It's well reflected in the energy inflation 191 00:17:21,845 --> 00:17:27,348 numbers, 18. 8, if I recall, as compared to. 192 00:17:27,477 --> 00:17:31,775 Lower number in September. So a clear increase there. 193 00:17:31,857 --> 00:17:36,589 But another new development that we have observed as well since September is the 194 00:17:36,706 --> 00:17:44,817 cost of long-term financing. Which, as indeed increased, and, you know, of course we 195 00:17:44,884 --> 00:17:53,177 look at numbers, and the average 10-year sovereign yields has risen by around 35%. 196 00:17:53,337 --> 00:17:59,162 Sorry, 35 basis points since our last cutoff for the September projections. 197 00:17:59,217 --> 00:18:06,521 So if you combine these two factors, actually the governing council debated whether 198 00:18:06,648 --> 00:18:16,704 a hike was appropriate. But on the basis of the uncertainty that accumulates, and 199 00:18:16,777 --> 00:18:24,897 that rises as well, on the basis of underlying inflation that has broadly remained 200 00:18:25,017 --> 00:18:27,597 unchanged,. 201 00:18:28,797 --> 00:18:34,497 The governing council unanimously decided that we were well positioned enough at 202 00:18:34,597 --> 00:18:43,005 this stage to hold, and that a measured approach at this point in time remained 203 00:18:43,077 --> 00:18:44,277 appropriate. 204 00:18:44,577 --> 00:18:49,403 So that's the that's the discussion that we had over the last few hours, as well as 205 00:18:49,454 --> 00:18:55,217 yesterday afternoon. I think it gives you the flavor of, you know, dissecting 206 00:18:55,317 --> 00:19:00,983 inflation, as much as we could, and the consequences of inflation on wages in 207 00:19:01,056 --> 00:19:06,777 particular, but also the overall changes that we have seen and always applying our 208 00:19:06,837 --> 00:19:11,397 three-prong approach to our monetary stance, monetary policy stance. 209 00:19:12,417 --> 00:19:13,617 Thank you. 210 00:19:14,517 --> 00:19:18,597 Next question, Balazs Korányi of Reuters. Balazs, please. 211 00:19:20,937 --> 00:19:24,922 Thank you very much. I'm afraid one of my questions is also going to get bumped to 212 00:19:24,992 --> 00:19:26,192 the back of the queue. 213 00:19:26,337 --> 00:19:29,477 No, not suggesting that we bump, but I'm suggesting that we focus all the question 214 00:19:29,527 --> 00:19:31,797 on monetary policy first and then the others. 215 00:19:32,817 --> 00:19:37,257 Given what you said about upside risk to inflation, you just said the middle path 216 00:19:37,317 --> 00:19:43,513 seems appropriate. Was there also consensus on this in the governing council? 217 00:19:43,557 --> 00:19:47,325 Because you mentioned there was a discussion of raising interest rates. 218 00:19:47,397 --> 00:19:56,793 So was there unanimity on this as well? And given this upside risk, do you think the 219 00:19:56,840 --> 00:20:01,247 ECB will need to keep raising interest rates at some point in the future? 220 00:20:01,317 --> 00:20:07,106 Second question is kind of similar to Annette's question. 221 00:20:07,197 --> 00:20:12,480 I'm also curious about the whys. Why would you leave Europe's most powerful 222 00:20:12,545 --> 00:20:18,704 financial position? And I'm especially interested in this thought that you might 223 00:20:18,790 --> 00:20:24,427 want to take a greater view on French politics, want to have the ability to express 224 00:20:24,477 --> 00:20:31,303 yourself, is this indeed the case? And in what way would you be doing this? 225 00:20:31,377 --> 00:20:37,341 Would you be standing for office? Or would you be just commenting on what's 226 00:20:37,557 --> 00:20:38,757 happening? 227 00:20:42,777 --> 00:20:48,768 So you were right, Balazs. The second question, I will I will address it at a later 228 00:20:48,814 --> 00:20:55,409 stage. But on your first question, there. Was that debate, you know, we look at 229 00:20:55,460 --> 00:21:00,708 numbers, we look at increased risk, we look at the final. 230 00:21:00,837 --> 00:21:04,908 Tightening as a result of the long-term interest rates. 231 00:21:04,977 --> 00:21:12,510 And pros and cons and there were views along the lines of maybe now, why not. 232 00:21:12,597 --> 00:21:17,937 There was a unanimous decision at the end of the discussion that we were in a 233 00:21:18,057 --> 00:21:24,217 sufficiently good position to actually wait. 234 00:21:24,297 --> 00:21:30,837 For additional information and the inter-meeting period will be information-rich. 235 00:21:30,897 --> 00:21:35,080 I'm going to take you through the list of what we're going to receive in the next 236 00:21:35,157 --> 00:21:40,809 few weeks that will actually help us determine whether the. 237 00:21:40,917 --> 00:21:48,472 Situation that we see now, which could have warranted a hike, is going to be 238 00:21:48,648 --> 00:21:54,366 confirmed. And in that case, the sense of direction is quite clear. 239 00:21:54,657 --> 00:21:58,120 So the list of information that we will have. 240 00:21:58,197 --> 00:22:04,748 A new set of staff projections, September sorry, September. 241 00:22:04,857 --> 00:22:08,689 Not September, December will be a projection exercise. 242 00:22:08,757 --> 00:22:15,623 Two new inflation prints. Quarter to 3 GDP, Q3 unemployment compensation per 243 00:22:15,674 --> 00:22:20,557 employee and negotiated wages, two unemployment readings, two industrial production 244 00:22:20,613 --> 00:22:25,383 releases the November PMIs, two rounds of bank interest rate statistics for both 245 00:22:25,437 --> 00:22:29,924 September and October. So as you see, there is a mine of information and data that 246 00:22:29,988 --> 00:22:34,920 we will receive in the weeks to come. And this will be particularly relevant with 247 00:22:34,965 --> 00:22:40,662 underlying inflation. Because while underlying inflation, as has not been very 248 00:22:40,710 --> 00:22:47,375 informative at the beginning of the shock, the more we progress into the shock, the 249 00:22:47,457 --> 00:22:52,557 more informative-rich the underlying inflation indicators are. 250 00:22:52,737 --> 00:22:55,374 They are beginning to be more informative. 251 00:22:55,437 --> 00:23:01,036 And broadly, you know, they haven't changed. 252 00:23:01,137 --> 00:23:04,380 There's a specific mention to that effect in the monetary policy statement. 253 00:23:04,437 --> 00:23:09,887 But with those six weeks of additional information, we will have a lot more in 254 00:23:09,942 --> 00:23:14,104 relation to underlying inflation. And that's what we will be particularly attentive 255 00:23:14,150 --> 00:23:16,437 to. Not to the detriment on inflation outlook. 256 00:23:16,497 --> 00:23:19,198 We will continue to look at inflation outlook. 257 00:23:19,257 --> 00:23:24,452 We will continue to look at the risks. We will most likely produce scenarios again 258 00:23:24,591 --> 00:23:29,980 in December. And we will, of course, look at the dynamics and the strength of 259 00:23:30,033 --> 00:23:34,658 monetary policy transmission. But underlying inflation will probably take a 260 00:23:34,759 --> 00:23:41,028 particular standing in the three-prong approach that we apply to our monetary policy 261 00:23:41,097 --> 00:23:42,297 decision. 262 00:23:44,217 --> 00:23:46,748 Our next question is for Alex Weber from Bloomberg. 263 00:23:46,797 --> 00:23:47,997 Alex, please. 264 00:23:51,297 --> 00:23:56,759 Thank you very much. My first question is on the French bond markets in particular. 265 00:23:56,817 --> 00:24:00,734 So with the kind of spread widening we've seen in recent weeks, there's been a lot 266 00:24:00,775 --> 00:24:05,091 of questions about whether and when the ECB should get involved. 267 00:24:05,157 --> 00:24:09,237 Can you tell us a bit about how which metrics you're watching specifically? 268 00:24:09,297 --> 00:24:12,911 Is it more about the speed of the adjustment, the absolute level of the spread, or 269 00:24:12,951 --> 00:24:16,415 is it actually about contagion to other countries? 270 00:24:16,497 --> 00:24:18,797 My second question also in the same vein as my colleagues. 271 00:24:18,837 --> 00:24:21,597 I'm sorry about your departure. You're now leaving. 272 00:24:21,897 --> 00:24:23,097 Thank you. 273 00:24:23,097 --> 00:24:26,880 You're now leaving at the beginning of a year with a lot of national elections, 274 00:24:26,934 --> 00:24:31,864 especially in your home country. Did you consider whether this particular timing 275 00:24:31,955 --> 00:24:35,157 could undermine the independence of the ECB? 276 00:24:38,937 --> 00:24:43,553 Thank you very much for both questions. And I will entertain your second question 277 00:24:43,621 --> 00:24:50,055 with the other two. So I hope you don't mind, but I'm going to give you a documented 278 00:24:50,097 --> 00:24:55,755 and well-articulated response because this is a matter which I had assumed you might 279 00:24:55,910 --> 00:25:05,328 raise. The first response that I would give you is that this long-term and we look 280 00:25:05,404 --> 00:25:09,417 at the tenure, but we look at the entire curve. 281 00:25:09,477 --> 00:25:14,193 But say the long end of the curve across the world, not specifically for a member 282 00:25:14,235 --> 00:25:18,881 state, not specifically for the whole of Europe, but across the world, as reason 283 00:25:18,968 --> 00:25:23,896 significantly. If you compare numbers, say you take February and now you have a 284 00:25:23,945 --> 00:25:30,640 significant number of basis points that have increased these these. 285 00:25:30,717 --> 00:25:34,691 Corporate bonds and and this is caused by multiple factors. 286 00:25:34,737 --> 00:25:37,201 This is called caused by expected inflation. 287 00:25:37,257 --> 00:25:40,607 This is caused by expected interest rate path. 288 00:25:40,737 --> 00:25:47,855 And we. Think, although there is a very interesting blog that I highly recommend, we 289 00:25:47,933 --> 00:25:54,091 think that the debt issuance by some of the hyperscalers without really crowding out 290 00:25:54,214 --> 00:25:59,699 yet but increasing the volume of long-term bonds that are issued also plays a role. 291 00:25:59,757 --> 00:26:05,046 But that has affected the entire the entire market. 292 00:26:05,217 --> 00:26:08,777 Second observation, and that applies also to all countries. 293 00:26:08,877 --> 00:26:15,734 Those countries with the high debt, with high debt, have to factor into their fiscal 294 00:26:15,837 --> 00:26:22,317 policy plans the fact that interest rates are higher and will probably remain 295 00:26:22,377 --> 00:26:23,337 higher. 296 00:26:23,337 --> 00:26:24,537 For a period of time. 297 00:26:26,757 --> 00:26:32,708 In Europe, if you apply that principle, what it means is that policy measures have 298 00:26:32,784 --> 00:26:40,197 to be adopted as part of a plan that is always submitted to Brussels. 299 00:26:40,317 --> 00:26:46,901 And that has to comply with the European fiscal framework. 300 00:26:47,097 --> 00:26:51,817 So we will be looking at all that, obviously, and some. 301 00:26:51,897 --> 00:26:56,826 Member states face particular challenges I would say that it narrows down and it 302 00:26:56,877 --> 00:27:04,735 boils down to those countries that have a high level of debt in general. 303 00:27:04,917 --> 00:27:11,526 But I would also add that should market developments threaten the smooth 304 00:27:11,577 --> 00:27:17,722 transmission of our monetary policy, including through unwarranted and disorderly 305 00:27:17,796 --> 00:27:22,544 market movements, we have instruments available to respond. 306 00:27:22,677 --> 00:27:26,811 And the criterias and conditions under which this applies, are well known. 307 00:27:26,877 --> 00:27:30,162 They are published. And I'm sure you know them. 308 00:27:30,237 --> 00:27:31,437 Thank you. 309 00:27:33,177 --> 00:27:35,600 Stefan Rakius of Handelsblatt next, please. 310 00:27:35,637 --> 00:27:36,837 Stefan. 311 00:27:38,637 --> 00:27:43,284 Thank you for the floor. Good afternoon. My first question is on monetary policy you 312 00:27:43,333 --> 00:27:47,766 mentioned that you are still in the phase of measured tightening. 313 00:27:47,877 --> 00:27:53,266 That said, why would there be any doubt that the ECB will stick to the quarterly 314 00:27:53,322 --> 00:27:59,452 pace and hike again in December? And my second question, also on a personal note, 315 00:27:59,531 --> 00:28:05,523 will you let us know what you are going to do explicitly after the 7th of February? 316 00:28:05,577 --> 00:28:06,777 Thanks. 317 00:28:08,397 --> 00:28:15,077 Thank you very much. So to your first question, yes, at this point in time, we are 318 00:28:15,135 --> 00:28:22,151 still on this measured response to the current situation. 319 00:28:22,257 --> 00:28:30,884 And as I said earlier on, we will assess the development of geopolitical. 320 00:28:30,957 --> 00:28:38,564 Situation, the development of energy prices, the development of tightening of the 321 00:28:38,679 --> 00:28:46,404 the cost of financing, and any other facts, figures, that are relevant to compare 322 00:28:46,460 --> 00:28:52,751 the situation as we have it now with what we receive next December. 323 00:28:52,857 --> 00:28:59,157 And as I said, unless there were major development, the direction of travel is quite 324 00:28:59,210 --> 00:29:08,440 clear. For all of us. Is there a case for reducing our activity to the quarterly 325 00:29:08,508 --> 00:29:09,417 meetings? 326 00:29:09,417 --> 00:29:10,617 No. 327 00:29:11,097 --> 00:29:14,477 No. We have never restricted ourselves to that. 328 00:29:14,577 --> 00:29:20,652 It is it is true that we are more data-rich at. 329 00:29:20,757 --> 00:29:26,305 Those projection meetings, but we are also capable of understanding what staff is 330 00:29:26,386 --> 00:29:30,941 explaining to us, the information they're collecting, the analysis that they they 331 00:29:31,004 --> 00:29:38,539 do. And if it was so warranted, in order to reach our target of 2% medium term, not 332 00:29:38,646 --> 00:29:44,261 restricted to quarterly meetings. And we have no plan to restrict the number of 333 00:29:44,304 --> 00:29:46,197 meetings that we'll deal with monetary policy. 334 00:29:51,657 --> 00:29:54,493 Next question. Olaf Störbeck of Financial Times. 335 00:29:54,537 --> 00:29:55,737 Olaf, please. 336 00:29:58,977 --> 00:30:04,915 Yeah. Thanks for taking my questions. I have also one on on your or kind of on on 337 00:30:04,979 --> 00:30:11,662 implications of your decision today. So you are the eighth of 26 executive board 338 00:30:11,707 --> 00:30:16,732 members in the history of the ECB who is resigning or who is leaving early, which is 339 00:30:16,786 --> 00:30:22,432 quite a high share. Does this point to some flaws in the ECB's governance, or is it 340 00:30:22,497 --> 00:30:23,337 is the. 341 00:30:23,337 --> 00:30:24,957 Sorry. Can you repeat your question? You. 342 00:30:25,257 --> 00:30:30,697 Eight of the the total exec 26 executive board members, including you, will have 343 00:30:30,747 --> 00:30:37,137 left early before the kind of full serving the full term, which is quite a high rate 344 00:30:37,217 --> 00:30:41,464 that does this suggest there there are yeah flaws in the governance? 345 00:30:41,517 --> 00:30:45,897 Is are ideas too long? You said in this Bloomberg interview early at the start of 346 00:30:45,937 --> 00:30:49,054 the year, you initially thought it's a five-year term. 347 00:30:49,137 --> 00:30:52,500 So yeah, I would be interested in your thought on that. 348 00:30:52,557 --> 00:31:01,791 And also coming back to French bond yields, and to to what extent is the recent rise 349 00:31:01,849 --> 00:31:05,586 in government bond yields doing some of the ECB's work at the moment? 350 00:31:05,637 --> 00:31:10,744 And is the need for further interest rate increases reduced because of that? 351 00:31:10,857 --> 00:31:12,057 Thanks. 352 00:31:13,977 --> 00:31:18,283 Well, thank you on your first question. I will only address the the issue of 353 00:31:18,371 --> 00:31:24,247 governance. I think the governance of the ECB has proven its solidity. 354 00:31:24,357 --> 00:31:29,395 We have had transition in the past. Business continuity has always been the mantra 355 00:31:29,445 --> 00:31:31,908 for this institution. It has never failed. 356 00:31:31,977 --> 00:31:37,328 And I have every confidence that it will continue to apply the principles of 357 00:31:37,483 --> 00:31:44,505 continuity of mission-focused, determined action to reach the target of our 2% 358 00:31:44,583 --> 00:31:49,895 medium term. And you can rest assured that until February the 7th, I'm in charge I'm 359 00:31:49,977 --> 00:31:56,857 focused, and I will be working without any reservation, without any excuses. 360 00:31:57,117 --> 00:32:02,597 On your other question, I think I've I've addressed that, and it's really one of the 361 00:32:02,697 --> 00:32:07,437 one. Of the phenomenons that we have observed, which have changed the picture since 362 00:32:07,497 --> 00:32:17,817 September. Because yes, you're right, long-term Yields has. 363 00:32:17,877 --> 00:32:23,346 Increased, across the board, so more so in some countries, less so in others. 364 00:32:23,397 --> 00:32:25,331 And then you begin looking at the spreads. 365 00:32:25,377 --> 00:32:32,244 And we look at everything. But that has been a qualifying element, if you will, to 366 00:32:32,375 --> 00:32:45,024 the increase in energy prices. So energy prices have increased inflation, long-term 367 00:32:45,094 --> 00:32:50,337 financing costs have qualified the magnitude of that increase, and it's in those 368 00:32:50,397 --> 00:32:55,235 circumstances which we will be very attentive to in the weeks to come. 369 00:32:55,317 --> 00:32:59,671 And with another special focus on underlying inflation, that we will make our 370 00:32:59,740 --> 00:33:00,940 decision in December. 371 00:33:04,497 --> 00:33:07,551 Next question, Andres Stumpf of Expansion in Spain. 372 00:33:07,617 --> 00:33:08,817 Andres, please. 373 00:33:09,897 --> 00:33:17,059 Hello. Madame President, I I would like to know if this no hiking thing, because of 374 00:33:17,157 --> 00:33:22,765 tighter financial conditions in the markets, is a one thing only, this for this 375 00:33:22,846 --> 00:33:28,931 meeting, or if it will happen to continue throughout November. 376 00:33:29,037 --> 00:33:35,125 The ECB could not hike or or keep the interest rate unchanged again because of that. 377 00:33:35,217 --> 00:33:40,285 And a second question for the pile of later. 378 00:33:40,497 --> 00:33:46,787 The mandates in the European Council and the European Parliament are going to be 379 00:33:47,157 --> 00:33:53,258 discussed in before you leave. Would you be interested at all or not applying to 380 00:33:53,349 --> 00:33:57,237 those positions? Thank you. Just to keep you near. 381 00:33:59,577 --> 00:34:03,706 That's really kind of you, but I I'll try to address your second question as well 382 00:34:03,774 --> 00:34:11,740 with the other questions. So I think you're right to actually characterize our 383 00:34:11,774 --> 00:34:15,486 decision. I hadn't thought about it, but you're right in characterizing it as a no 384 00:34:15,588 --> 00:34:20,483 hiking decision. Because we we did ask ourselves the question, and there was a 385 00:34:20,545 --> 00:34:26,207 number of us, you know, assessing and and pondering whether it was warranted as of 386 00:34:26,277 --> 00:34:33,187 now already, or whether we needed to confront the current assessment with future 387 00:34:33,297 --> 00:34:40,705 data numbers elements that we would assess against our three-prong monetary policy 388 00:34:40,797 --> 00:34:47,376 reaction function. So it's as as I have said, and you're probably getting tired of 389 00:34:47,455 --> 00:34:51,330 me saying it, but we decide meeting by meeting. 390 00:34:51,417 --> 00:34:58,896 So it it does not indicate that we will not be hiking in November. 391 00:34:58,977 --> 00:35:03,921 And our next meeting is in December. As I've said earlier, I think in response to a 392 00:35:03,960 --> 00:35:13,568 previous question, if. The assessment that we have today is not infirmed by 393 00:35:13,645 --> 00:35:17,157 significant developments, the direction of travel is clear. 394 00:35:21,957 --> 00:35:24,725 Next question, Jean-Philippe Lacour of Agence France-Presse. 395 00:35:24,777 --> 00:35:25,857 Jean-Philippe, please. 396 00:35:25,857 --> 00:35:26,757 Before I can. 397 00:35:26,757 --> 00:35:27,957 Hello, Madam President. 398 00:35:28,257 --> 00:35:29,457 Hello, Mr President. 399 00:35:29,637 --> 00:35:33,780 I have a question linked to France, and it's only for the second and last part of 400 00:35:33,837 --> 00:35:37,968 the answering of the bunch of questions we had today. 401 00:35:38,097 --> 00:35:42,822 What does really concern you the most in France and your home country? 402 00:35:42,897 --> 00:35:45,788 I certainly not only the high yields for the moment. 403 00:35:45,837 --> 00:35:50,753 So could you maybe describe what are the main concerns? 404 00:35:50,817 --> 00:35:57,678 And and how do you want to, as you you don't want to stay neutral toward this this 405 00:35:57,734 --> 00:36:02,327 situation, and what will be yes the the the nature of your intervention? 406 00:36:02,397 --> 00:36:09,225 Do you intend to support actively maybe one candidate or, if so, which one? 407 00:36:09,297 --> 00:36:14,365 And the last maybe very leger questions, but when did you inform your grandchildren 408 00:36:14,418 --> 00:36:15,618 about your decision? 409 00:36:19,737 --> 00:36:20,937 I remember that. 410 00:36:22,437 --> 00:36:23,637 Them too. Them too. 411 00:36:25,137 --> 00:36:25,617 Okay. 412 00:36:25,617 --> 00:36:27,477 Are there other questions on monetary policy? 413 00:36:28,797 --> 00:36:34,317 Yes. Then please Viggo Risvik of the Dutch Daily Telegraaf, please. 414 00:36:38,397 --> 00:36:43,210 Thank you. I was wondering, also, about France a bit. 415 00:36:43,257 --> 00:36:48,726 So it's a bit on defense of monetary policy, but given. 416 00:36:48,777 --> 00:36:54,733 The current situation in France, besides the spreads rising, not all that much has 417 00:36:54,797 --> 00:37:01,052 changed in the last six months. High debt has been known for quite some time. 418 00:37:01,137 --> 00:37:07,806 Yet now there are some talks about the possibility of another euro crisis. 419 00:37:07,977 --> 00:37:12,257 I was wondering what your thoughts are on that. 420 00:37:12,537 --> 00:37:18,046 And I do have a second question also about your departure. 421 00:37:18,177 --> 00:37:24,393 Now in the next six in the first six months of 2027, three experienced board members 422 00:37:24,454 --> 00:37:30,625 will leave the ECB. I was wondering how you will think about the continuity of the 423 00:37:30,689 --> 00:37:31,917 ECB in that regard. 424 00:37:37,317 --> 00:37:46,305 Thank you thank you very much. On on your question regarding the. 425 00:37:46,857 --> 00:37:50,182 I think I will I will take Monsieur Lacour's question regarding what concerns me 426 00:37:50,225 --> 00:37:54,599 later on, because it applies not to one country, it applies to all countries. 427 00:37:54,657 --> 00:38:02,961 So have there been changes in the last six months where they clearly have been 428 00:38:03,037 --> 00:38:07,590 changes? They're the ones that apply to all countries? 429 00:38:07,677 --> 00:38:10,553 The ones related to energy prices in general? 430 00:38:10,617 --> 00:38:15,233 The ones related to financing and particularly the financing costs at the long at 431 00:38:15,291 --> 00:38:22,189 the long end of the curve? And obviously we are mindful of all such developments. 432 00:38:22,317 --> 00:38:25,748 Do I fear that there will be developments coming up? 433 00:38:25,857 --> 00:38:31,085 There will be developments, obviously. But this is not going to deter us, European 434 00:38:31,150 --> 00:38:35,156 Central Bank, from delivering on our mission of price stability. 435 00:38:35,217 --> 00:38:40,125 And we will continue to do that on the basis of all the information that we receive. 436 00:38:40,197 --> 00:38:41,397 Thank you. 437 00:38:44,577 --> 00:38:48,978 Turning to turning to our online participants, I'd like to give the floor to Silvia 438 00:38:49,017 --> 00:38:52,557 Berzoni of Cora Media. Silvia, over to you, please. 439 00:38:57,117 --> 00:38:58,317 Good afternoon, President. 440 00:38:59,937 --> 00:39:00,357 Good afternoon. 441 00:39:00,357 --> 00:39:04,274 I think we are all I think we are all sorry for your departure. 442 00:39:04,317 --> 00:39:09,642 So two questions, if I may. The first one is what worries you the most today? 443 00:39:09,717 --> 00:39:13,239 If it's inflation or financial fragmentation. 444 00:39:13,317 --> 00:39:18,943 And in September, French sovereign bond holdings declined significantly less than 445 00:39:19,029 --> 00:39:23,530 Italians and Germans under the quantitative tightening program. 446 00:39:23,577 --> 00:39:30,464 So as the pattern continued in October, and is this purely a mechanical rolloff? 447 00:39:30,537 --> 00:39:31,737 Thank you very much. 448 00:39:32,877 --> 00:39:37,054 Well, thank you so much. And thank you I will miss you, actually. 449 00:39:37,137 --> 00:39:42,717 So what worries me most is anything that affects price stability. 450 00:39:42,777 --> 00:39:49,690 Because we are fixated on on our mandate, and price stability is, you know, our our 451 00:39:49,797 --> 00:39:56,842 compass. So obviously inflation matters a lot, but price stability does not take 452 00:39:56,888 --> 00:40:01,689 place without financial stability. So we have to look out for any threats to 453 00:40:01,742 --> 00:40:04,623 financial stability and any threat to price stability. 454 00:40:04,677 --> 00:40:10,454 So I would say that I would package this too, because what's driving us is the the 455 00:40:10,594 --> 00:40:17,891 price stability mandate that we have. I think you had another question now that I 456 00:40:17,937 --> 00:40:22,607 think of it. It was after you told me that you would miss me. 457 00:40:22,677 --> 00:40:23,577 What was the second? 458 00:40:23,577 --> 00:40:27,279 It's the French bond holdings declining and whether it's purely a mechanical 459 00:40:27,341 --> 00:40:28,797 rolloff. That's the one that I've noted. 460 00:40:31,857 --> 00:40:33,357 I'm sorry. I missed the second part. 461 00:40:34,377 --> 00:40:35,577 You want to repeat it, perhaps? 462 00:40:36,657 --> 00:40:43,077 Yeah. Yeah. It does exactly. In September, French sovereign bond holdings. 463 00:40:43,257 --> 00:40:43,797 Oh, yeah, yeah, yeah. 464 00:40:43,797 --> 00:40:47,277 Declined. Yeah. Yeah, yeah. So if this is just a mechanical. 465 00:40:47,457 --> 00:40:52,062 Okay. My understanding of of that, but I'm not the, you know, the top-notch expert 466 00:40:52,137 --> 00:40:58,752 for all redemption. Of all bonds coming up for all countries across the member 467 00:40:58,797 --> 00:41:05,251 states. What I can tell you is that we are not changing our policy as far as 468 00:41:05,577 --> 00:41:09,397 letting. Redemption take place without purchasing. 469 00:41:09,477 --> 00:41:14,016 And without replacing those bonds that that come for redemption, I also know for a 470 00:41:14,060 --> 00:41:18,512 fact that that's from previous life, that November is is a pretty heavy month when 471 00:41:18,566 --> 00:41:21,895 it comes to France in particular. But it's all mechanical. 472 00:41:21,957 --> 00:41:25,998 There is no behind-the-scene, you know, arrangement to tweak here, tweak there, 473 00:41:26,046 --> 00:41:29,637 rebalance, and and cut corners. We we just apply the principle of no redemption. 474 00:41:33,237 --> 00:41:34,557 Would you like to address the other question? 475 00:41:34,737 --> 00:41:41,522 Okay. So allow me not to necessarily dig into each and every specific aspect of your 476 00:41:41,608 --> 00:41:46,609 of your question in relation to my decision to step down. 477 00:41:46,677 --> 00:41:53,046 So my decision is to step down from my position as President of the European Central 478 00:41:53,105 --> 00:41:58,180 Bank after the February monetary policy governing council. 479 00:41:58,257 --> 00:42:01,923 So you will have the great pleasure, and I will have the great pleasure of seeing 480 00:42:01,970 --> 00:42:07,199 those of you who care to come twice: once in December, once in February. 481 00:42:07,257 --> 00:42:11,449 So we are not done. We will continue to see each other. 482 00:42:11,517 --> 00:42:19,587 And I'm delighted about that. There is never a good time to. 483 00:42:19,737 --> 00:42:25,325 Leave. But it's embedded in the governance of the ECB that presidents, board 484 00:42:25,396 --> 00:42:29,675 members, have to leave because they cannot be up for renewal. 485 00:42:29,757 --> 00:42:36,049 So the end of my term in any event would have been October 2027. 486 00:42:36,177 --> 00:42:42,808 The reason I'm anticipating the end of my term by living in February of 2027 instead 487 00:42:42,897 --> 00:42:49,493 of October is, as I have said to colleagues, members of staff, and governors, 488 00:42:49,557 --> 00:42:56,798 because I want to have the freedom of speech, the freedom of expression, and the 489 00:42:56,865 --> 00:43:02,671 freedom to engage on matters that are not monetary policy matters. 490 00:43:02,757 --> 00:43:08,087 As you all know, as President of the European Central Bank and my colleagues on the 491 00:43:08,145 --> 00:43:12,209 executive boards and on the governing council are under pretty much the same 492 00:43:12,292 --> 00:43:16,991 constraints, we have an obligation of neutrality. 493 00:43:17,097 --> 00:43:21,101 We comment on the situation with the focus on monetary policy. 494 00:43:21,177 --> 00:43:25,877 We are driven by one mandate, and we don't get out of that mandate because that's 495 00:43:25,917 --> 00:43:35,112 the price we pay for being independent. At this time, in relation to many corners of 496 00:43:35,177 --> 00:43:41,774 the world, not just European corners, not just Europe, I think that my voice can 497 00:43:41,866 --> 00:43:48,454 help, my action can help in relation to principles that are dear to my heart. 498 00:43:48,597 --> 00:43:55,808 One of those principles because I think Jean-Philippe Lacour, you asked me. 499 00:43:56,037 --> 00:44:01,201 I don't think that I can remain neutral. I don't think that I can be comfortable in 500 00:44:01,262 --> 00:44:07,228 that neutrality at the present time. And I'm interested in the truth. 501 00:44:07,317 --> 00:44:14,110 And I see the truth being very often damaged. 502 00:44:14,337 --> 00:44:23,684 Contradicted. By Misrepresentation, and from the position that I have had for the 503 00:44:23,742 --> 00:44:25,137 last 20-plus years of my 504 00:44:25,377 --> 00:44:30,135 life, in economic and financial matters, on the international scene as managing 505 00:44:30,197 --> 00:44:35,101 director of the IMF, as president of the ECB, there are things that I can say with 506 00:44:35,171 --> 00:44:39,246 the people will listen or not is another story. 507 00:44:39,417 --> 00:44:42,050 But I feel that I should say those things. 508 00:44:42,117 --> 00:44:48,036 And I cannot do so in my current position. 509 00:44:48,177 --> 00:44:49,317 Voilà. 510 00:44:49,317 --> 00:44:53,727 Thank you. That concludes our press conference. 511 00:44:53,817 --> 00:44:54,657 And. 512 00:44:54,657 --> 00:44:59,148 And no, one more thing that I would like to say, because I don't want to, you know, 513 00:44:59,277 --> 00:45:04,255 I will be replaced. So rest assured that not only the ECB is going to carry on with 514 00:45:04,324 --> 00:45:10,062 perfect continuity of business. A process has already started. 515 00:45:10,137 --> 00:45:16,144 To identify my successor. There are plenty of excellent candidates, much better than 516 00:45:16,215 --> 00:45:20,489 me, actually. So don't worry about continuity of business. 517 00:45:20,577 --> 00:45:23,919 Don't worry about, you know, decision-making in limbo. 518 00:45:23,997 --> 00:45:29,858 No. Absolutely not. The institution is solid, strong. 519 00:45:29,937 --> 00:45:33,390 Like a rock. And it will continue being so. 520 00:45:33,477 --> 00:45:34,617 Thank you. 521 00:45:34,617 --> 00:45:39,293 We'll see each other again if you want on 17 December here for the next press 522 00:45:39,357 --> 00:45:40,557 conference. Thank you very much.