WEBVTT NOTE Brussels Live. Transcribed and translated automatically from the original sound. Mistakes are possible. Independent service, not affiliated with the European Parliament or the European Commission. Source: © European Union. AI-generated: Transcripts, translations and summaries on this site are generated automatically by AI: speech recognition (Soniox), machine translation and summaries (Mistral AI). Not edited by humans before publication. EU AI Act, Article 50. 00:00:00.897 --> 00:00:07.285 Good afternoon, and welcome to our press conference, with President Lagarde, and 00:00:07.414 --> 00:00:11.765 Vice President Vučić. My name is Wolfgang Preussel. 00:00:11.817 --> 00:00:15.537 As always, we are joined by journalists who are connected online; 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 00:00:19.250 --> 00:00:22.917 microphones. And with that, I hand over to you, President Lagarde. 00:00:23.877 --> 00:00:29.418 Thank you very much, Wolfgang, and good afternoon, good day to all of you. 00:00:29.517 --> 00:00:33.343 The Vice President and I welcome you to our press conference. 00:00:33.417 --> 00:00:38.584 The Governing Council today decided to keep the three key ECB interest rates 00:00:38.753 --> 00:00:43.417 unchanged. Energy prices have continued to rise. 00:00:43.557 --> 00:00:49.147 Posing upside risks to the inflation outlook and downside risks to the growth 00:00:49.254 --> 00:00:55.577 outlook. While the full effects of the energy shock are still unfolding, underlying 00:00:55.627 --> 00:01:01.786 inflation has remained broadly stable so far, and wages do not show a material 00:01:01.857 --> 00:01:08.100 response at this stage. The increased magnitude and duration of the energy shock, as 00:01:08.171 --> 00:01:14.150 well as the implications for indirect and second-round effects, are likely to drive 00:01:14.219 --> 00:01:21.062 up inflation and lower growth. Financing conditions have tightened since our last 00:01:21.140 --> 00:01:25.730 meeting. Which is likely to weigh on inflation and growth. 00:01:25.977 --> 00:01:31.754 We are committed to setting monetary policy to ensure that inflation stabilizes at 00:01:31.857 --> 00:01:39.201 our 2% target in the medium term. We remain well-positioned to navigate the current 00:01:39.264 --> 00:01:44.464 elevated uncertainty. We will follow a data-dependent and meeting-by-meeting 00:01:44.517 --> 00:01:49.145 approach to determining the appropriate monetary policy stance. 00:01:49.257 --> 00:01:53.780 In particular, our interest rate decisions will be based on our assessment of the 00:01:53.827 --> 00:01:58.603 inflation outlook and the risks surrounding it, in light of the incoming economic 00:01:58.683 --> 00:02:03.997 and financial data, as well as the dynamics of underlying inflation and the strength 00:02:04.059 --> 00:02:09.668 of monetary policy transmission. We are not pre-committing to a particular rate 00:02:09.821 --> 00:02:16.137 path. The decisions taken today are set out in a press release that is available on 00:02:16.257 --> 00:02:21.517 our website. And I will now outline in more detail how we see the economy and 00:02:21.590 --> 00:02:26.467 inflation developing and will then explain our assessment of financial and monetary 00:02:26.517 --> 00:02:34.427 conditions. The incoming data suggest that the euro area economy continued to expand 00:02:34.485 --> 00:02:40.637 in the third quarter of the year. Services have recovered, after weakening at the 00:02:40.687 --> 00:02:47.410 start of the Middle East conflict. Manufacturing, digital services, and exports are 00:02:47.487 --> 00:02:52.030 benefiting from AR-related business investment. 00:02:52.137 --> 00:02:56.277 Government spending on infrastructure and defense is also supporting activity. 00:02:57.537 --> 00:03:03.383 These factors should continue to underpin growth in the near term. 00:03:03.537 --> 00:03:10.236 At the same time, renewed energy price increases have hit consumer confidence and 00:03:10.317 --> 00:03:14.623 higher financing costs are likely to weigh on growth. 00:03:14.757 --> 00:03:19.448 The unemployment rate remained at 6.4% in August. 00:03:19.617 --> 00:03:26.547 Growth in employment and the labor force remains subdued, while productivity has 00:03:26.649 --> 00:03:32.105 gradually picked up. Over the medium term, a recovery in confidence and real incomes 00:03:32.162 --> 00:03:37.660 driven by gradually declining energy prices and a robust labor market should bolster 00:03:37.737 --> 00:03:44.340 domestic demand. Investment in AI-related activities and government spending on 00:03:44.397 --> 00:03:50.478 infrastructure and defense should also continue to support growth. 00:03:50.577 --> 00:03:56.593 Export growth should pick up on the back of strengthening foreign demand. 00:03:56.697 --> 00:04:02.277 Higher potential growth requires structural reforms and has to be underpinned by 00:04:02.337 --> 00:04:09.966 sound public finances. Fiscal sustainability is a crucial anchor for broader 00:04:10.043 --> 00:04:16.811 economic stability. Fiscal responses to the energy shock should be temporary 00:04:16.888 --> 00:04:23.445 targeted and tailored. Simplifying and harmonizing rules across the EU's single 00:04:23.527 --> 00:04:28.403 market, accelerating the energy transition, and completing the savings and 00:04:28.466 --> 00:04:33.477 investment union are key building blocks to make our economy more dynamic and 00:04:33.537 --> 00:04:39.839 resilient. As the process for agreeing on the legal framework for the digital euro 00:04:39.897 --> 00:04:45.142 moves into its final stage, we reiterate the importance of reaching agreement on the 00:04:45.212 --> 00:04:51.432 single currency package as quickly as possible. 00:04:51.597 --> 00:04:56.604 Inflation rose to 3.8% in September, from 3. 00:04:56.697 --> 00:05:03.353 2% in August. Energy price inflation increased markedly, to 18. 00:05:03.477 --> 00:05:13.041 9%, from 14.3% in August. Diesel and petrol prices reached new peaks in September, 00:05:13.137 --> 00:05:17.237 in part reflecting elevated refining margins. 00:05:17.457 --> 00:05:21.335 Inflation excluding energy increased to 2. 00:05:21.417 --> 00:05:31.613 3% in September, from 2.1% in August. Food price inflation increased to 1.3%, from 00:05:31.797 --> 00:05:40.917 1. 1%. Services inflation increased to 3.2% in September, from 3% in August. 00:05:41.337 --> 00:05:45.730 While goods inflation declined to 1.1%, from 1. 00:05:45.897 --> 00:05:47.097 2%. 00:05:48.777 --> 00:05:54.547 Indicators of underlying inflation have remained broadly stable. 00:05:54.657 --> 00:05:59.888 Although the early stages of the pricing chain point to upward pressures. 00:05:59.997 --> 00:06:06.347 Wage pressures remain moderate, compensation per employee grew by 3. 00:06:06.477 --> 00:06:12.731 3% in the second quarter, down from 3. 6% in the first quarter. 00:06:12.837 --> 00:06:18.743 While rising productivity has helped contain the growth of unit labor costs. 00:06:19.017 --> 00:06:24.791 Our forward-looking wage tracker suggests that negotiated wage growth will fluctuate 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 00:06:35.982 --> 00:06:44.048 three quarters of 2027. Inflation expectations over shorter horizons have risen, but 00:06:44.112 --> 00:06:50.311 most measures of longer-term inflation expectations stand at around 2%, supporting 00:06:50.397 --> 00:06:56.286 the stabilization of inflation around target in the medium term. 00:06:56.397 --> 00:06:59.757 Energy prices have increased, beyond the baseline. 00:07:02.217 --> 00:07:07.077 Beyond the baseline path foreseen in the September ECB staff projections. 00:07:08.397 --> 00:07:13.826 This is likely to raise inflation further in the near term, and keep headline 00:07:13.907 --> 00:07:19.385 inflation well above target over the coming quarters. 00:07:19.497 --> 00:07:24.666 Thereafter, declining energy inflation together with the effects of higher interest 00:07:24.717 --> 00:07:30.938 rates should support the return of inflation to target. 00:07:31.077 --> 00:07:35.723 The risks to the growth outlook are to the downside. 00:07:35.817 --> 00:07:39.584 This is due in particular to the Middle East conflict and recent developments in 00:07:39.633 --> 00:07:46.199 Russia's unjustified war against Ukraine. Continued disruption of energy supplies 00:07:46.257 --> 00:07:52.509 could cause energy prices to rise further and for longer than currently expected. 00:07:52.617 --> 00:07:58.192 This would weigh on real incomes, spending, and investment. 00:07:58.317 --> 00:08:03.979 A worsening of global financial market sentiment, or intensifying spillovers in 00:08:04.041 --> 00:08:10.928 global bond markets, could tighten financing conditions and thereby dampen demand. 00:08:11.037 --> 00:08:16.274 Fiscal uncertainty, may also further tighten financing conditions and weaken 00:08:16.342 --> 00:08:21.375 confidence, thereby lowering consumption and investment. 00:08:21.477 --> 00:08:26.763 A resurgence of trade tensions between major economies could further disrupt supply 00:08:26.854 --> 00:08:32.779 chains, reduce exports, and weaken consumption and investment. 00:08:32.877 --> 00:08:38.610 By contrast, growth could turn out to be higher, if the economy and energy markets 00:08:38.672 --> 00:08:43.790 were to adapt more quickly than expected to the disruption caused by the ongoing 00:08:43.857 --> 00:08:50.060 conflicts or if these conflicts were resolved sustainably. 00:08:50.217 --> 00:08:54.472 Moreover, the adoption of new technologies by euroarea firms and governments 00:08:54.537 --> 00:08:59.283 spending on infrastructure and defense, as well as reforms to enhance productivity 00:08:59.337 --> 00:09:06.612 and complete the EU's single market, may drive up growth by more than expected. 00:09:06.717 --> 00:09:11.457 The risks to the inflation outlook are to the upside. 00:09:11.577 --> 00:09:15.297 This is due in particular to the Middle East conflict and recent developments in 00:09:15.345 --> 00:09:21.713 Russia's unjustified war against Ukraine. The energy shock could intensify further, 00:09:21.781 --> 00:09:28.875 and its effects on other prices and wages could be stronger than currently expected. 00:09:28.977 --> 00:09:35.187 Gas prices, in particular, could increase if supplies disrupted further or an 00:09:35.337 --> 00:09:40.665 unusual cold winter coincides with low storage levels. 00:09:40.797 --> 00:09:46.468 The longer energy prices stay high, the more likely they are to drive up broader 00:09:46.545 --> 00:09:47.745 inflation, through 00:09:47.937 --> 00:09:55.333 indirect and second-round effects. Renewed trade tensions could give rise to more 00:09:55.399 --> 00:10:01.377 fragmented global supply chains, curtail the supply of critical raw materials, and 00:10:01.437 --> 00:10:05.747 worsen capacity constraints in the euroarea economy. 00:10:05.877 --> 00:10:12.016 Extreme weather events, potentially reinforced by intensifying El Niño conditions, 00:10:12.107 --> 00:10:18.166 and the unfolding climate and nature crisis, more broadly, could drive up food 00:10:18.224 --> 00:10:19.917 prices by more than expected. 00:10:21.837 --> 00:10:27.657 By contrast, inflation could turn out to be lower if ongoing geopolitical conflicts 00:10:27.717 --> 00:10:33.869 were resolved sustainably, or if indirect or second-round effects from higher energy 00:10:33.955 --> 00:10:36.957 prices proved less pronounced than anticipated. 00:10:38.877 --> 00:10:43.557 More volatile and risk-averse financial markets, together with higher long-term 00:10:43.617 --> 00:10:51.578 interest rates, could weigh on demand, and thereby lower inflation as well. 00:10:51.717 --> 00:10:53.037 Financial conditions now. 00:10:53.577 --> 00:10:57.957 Financial conditions have tightened, since our previous meeting. 00:10:59.097 --> 00:11:03.477 Interest rates have broadly moved up, while stock prices have fallen. 00:11:04.917 --> 00:11:08.671 The cost of market-based debt for firms rose to 4. 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%. 00:11:19.317 --> 00:11:24.417 Growth in bank lending to firms slowed to an annual rate of 4. 00:11:24.537 --> 00:11:28.677 2% in August and September, from 4.4% in July. 00:11:29.637 --> 00:11:34.017 While corporate bond issuance grew at an annual rate of 4. 00:11:34.137 --> 00:11:38.831 2% in September, up from 3.8% in August and 3. 00:11:38.937 --> 00:11:40.137 5% in July. 00:11:42.057 --> 00:11:48.331 Credit standards for loans to firms tightened in the third quarter, as reported in 00:11:48.396 --> 00:11:54.366 our latest bank lending survey, with banks citing concern about the economic risks 00:11:54.443 --> 00:11:55.677 faced by their customers. 00:11:57.657 --> 00:12:03.533 Despite higher financing needs for inventories, and working capital, corporate loan 00:12:03.610 --> 00:12:07.317 demand declined, reflecting in particular higher interest rates. 00:12:09.177 --> 00:12:13.649 Mortgage rates rose to 3.8% in August, from 3. 00:12:13.737 --> 00:12:20.517 5% in July, while mortgage lending growth edged down to 3% in September. 00:12:22.137 --> 00:12:27.218 Credit standards for mortgage lending were unchanged in the third quarter, whereas 00:12:27.293 --> 00:12:31.677 demand for mortgages declined substantially, given higher interest rates. 00:12:33.297 --> 00:12:37.968 So, in conclusion, the governing council today decided to keep the three key ECB 00:12:38.037 --> 00:12:39.237 interest rates unchanged. 00:12:40.497 --> 00:12:45.167 We are committed to setting monetary policy to ensure that inflation stabilizes at 00:12:45.222 --> 00:12:47.037 our 2% target in the medium term. 00:12:48.417 --> 00:12:53.009 We will follow a data-dependent and meeting-by-meeting approach to determining the 00:12:53.060 --> 00:12:54.837 appropriate monetary policy stance. 00:12:56.337 --> 00:13:01.076 Our interest rate decisions will be based on our assessment of the inflation outlook 00:13:01.137 --> 00:13:05.927 and the risks surrounding it, in light of the incoming economic and financial data, 00:13:05.997 --> 00:13:10.970 as well as the dynamics of underlying inflation and the strength of monetary policy 00:13:11.026 --> 00:13:12.226 transmission. 00:13:12.597 --> 00:13:15.237 We are not pre-committing to a particular rate path. 00:13:16.257 --> 00:13:21.124 And in any case, we stand ready to adjust all of our instruments within our mandate, 00:13:21.200 --> 00:13:26.493 to ensure that inflation stabilizes sustainably at our medium-term target, and to 00:13:26.560 --> 00:13:30.477 preserve the smooth functioning of monetary policy transmission. 00:13:31.857 --> 00:13:33.717 We are now ready to take your questions. 00:13:35.457 --> 00:13:38.054 First question goes to our neighbor, Vice President of CNBC. 00:13:38.097 --> 00:13:39.297 Please. 00:13:39.417 --> 00:13:42.420 Thank you very much. President Lagarde, I have two questions. 00:13:42.477 --> 00:13:48.623 One on monetary policy. The first one on monetary policy is that, for the first time 00:13:48.691 --> 00:13:53.617 in, I don't know, how long, the mentioning of second-round effects in your press 00:13:53.666 --> 00:13:59.386 release was quite striking. So does it also mean that the markets bought right to 00:13:59.441 --> 00:14:04.445 expect a rate hike in December, because clearly there is now a risk of second-round 00:14:04.516 --> 00:14:09.470 effects? Second question is, how do you marry your position, which was which you 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 00:14:13.597 --> 00:14:19.181 are clouds on the horizon, given that the euroarea is probably in a worse situation 00:14:19.252 --> 00:14:24.039 than in spring? Looking at France, looking at the inflation picture, and perhaps you 00:14:24.096 --> 00:14:26.397 can tell us more about your motivation. Thank you. 00:14:28.917 --> 00:14:31.145 Thank you very much for your two questions. 00:14:31.197 --> 00:14:36.332 And I would suggest that we deal, first and foremost, with the monetary policy 00:14:36.408 --> 00:14:41.731 statement and the monetary policy decision questions, and that if there are 00:14:41.787 --> 00:14:45.798 additional questions, in relation to me, for instance, that we keep that for the 00:14:45.859 --> 00:14:50.720 end, because the real order of business here is the monetary policy. 00:14:50.877 --> 00:14:56.573 So, your second question will I'll deal with it later in the press conference, if 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 00:15:05.913 --> 00:15:11.444 second-round effects is something that we have paid very special attention to. 00:15:11.517 --> 00:15:18.670 I think I said that in previous press conferences, as inflation rises, as the risk 00:15:18.897 --> 00:15:26.385 to inflation has increased, we pay special attention to the direct effect. 00:15:26.457 --> 00:15:28.743 We see it clearly, to the indirect effect. 00:15:28.797 --> 00:15:34.702 We have seen an increase of those indirect effects, and to the secondary effects. 00:15:34.797 --> 00:15:40.405 Which would require a particular policy decision. 00:15:40.557 --> 00:15:47.545 We are very attentive and, at this point in time, we are not seeing risk of 00:15:47.697 --> 00:15:53.235 second-round effects in addition to what is already included in the projections. 00:15:53.337 --> 00:15:57.097 So, if you will, the projections that were prepared in September did include the 00:15:57.156 --> 00:16:02.565 risk of second-round effects. So we are looking very attentively to that and for the 00:16:02.644 --> 00:16:07.400 for the moment, as I think we say very clearly in the monetary policy statement, we 00:16:07.473 --> 00:16:14.761 do not see material risk of second-round effect at the moment. 00:16:15.057 --> 00:16:19.860 But give me the opportunity because I deferred your second question to a bit later, 00:16:19.917 --> 00:16:24.477 to give you a little bit of flavor of the debate that we had. 00:16:25.077 --> 00:16:30.601 Because while we were very attentive to second-round effects, and in particular to 00:16:30.669 --> 00:16:37.820 the evolution of wages, to the wage tracker, to the compensation per employee 00:16:37.883 --> 00:16:43.561 projections, to every instrument that we have to measure wages, in all sectors, 00:16:43.636 --> 00:16:49.306 including the opening position of unions in the coming collective bargaining 00:16:49.377 --> 00:16:54.289 bargaining agreement discussions, we have also looked at what has really 00:16:54.357 --> 00:16:57.842 significantly changed compared to last September. 00:16:57.957 --> 00:17:05.242 And the two key changes that we have seen is, first and foremost, the energy prices. 00:17:05.337 --> 00:17:12.085 And on that front, it's a combination of oil prices, but more importantly, petrol, 00:17:12.278 --> 00:17:16.257 fuel, gas, and of course refining margins. 00:17:16.317 --> 00:17:21.730 And that has increased significantly. It's well reflected in the energy inflation 00:17:21.845 --> 00:17:27.348 numbers, 18. 8, if I recall, as compared to. 00:17:27.477 --> 00:17:31.775 Lower number in September. So a clear increase there. 00:17:31.857 --> 00:17:36.589 But another new development that we have observed as well since September is the 00:17:36.706 --> 00:17:44.817 cost of long-term financing. Which, as indeed increased, and, you know, of course we 00:17:44.884 --> 00:17:53.177 look at numbers, and the average 10-year sovereign yields has risen by around 35%. 00:17:53.337 --> 00:17:59.162 Sorry, 35 basis points since our last cutoff for the September projections. 00:17:59.217 --> 00:18:06.521 So if you combine these two factors, actually the governing council debated whether 00:18:06.648 --> 00:18:16.704 a hike was appropriate. But on the basis of the uncertainty that accumulates, and 00:18:16.777 --> 00:18:24.897 that rises as well, on the basis of underlying inflation that has broadly remained 00:18:25.017 --> 00:18:27.597 unchanged,. 00:18:28.797 --> 00:18:34.497 The governing council unanimously decided that we were well positioned enough at 00:18:34.597 --> 00:18:43.005 this stage to hold, and that a measured approach at this point in time remained 00:18:43.077 --> 00:18:44.277 appropriate. 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 00:18:49.454 --> 00:18:55.217 yesterday afternoon. I think it gives you the flavor of, you know, dissecting 00:18:55.317 --> 00:19:00.983 inflation, as much as we could, and the consequences of inflation on wages in 00:19:01.056 --> 00:19:06.777 particular, but also the overall changes that we have seen and always applying our 00:19:06.837 --> 00:19:11.397 three-prong approach to our monetary stance, monetary policy stance. 00:19:12.417 --> 00:19:13.617 Thank you. 00:19:14.517 --> 00:19:18.597 Next question, Balazs Korányi of Reuters. Balazs, please. 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 00:19:24.992 --> 00:19:26.192 the back of the queue. 00:19:26.337 --> 00:19:29.477 No, not suggesting that we bump, but I'm suggesting that we focus all the question 00:19:29.527 --> 00:19:31.797 on monetary policy first and then the others. 00:19:32.817 --> 00:19:37.257 Given what you said about upside risk to inflation, you just said the middle path 00:19:37.317 --> 00:19:43.513 seems appropriate. Was there also consensus on this in the governing council? 00:19:43.557 --> 00:19:47.325 Because you mentioned there was a discussion of raising interest rates. 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 00:19:56.840 --> 00:20:01.247 ECB will need to keep raising interest rates at some point in the future? 00:20:01.317 --> 00:20:07.106 Second question is kind of similar to Annette's question. 00:20:07.197 --> 00:20:12.480 I'm also curious about the whys. Why would you leave Europe's most powerful 00:20:12.545 --> 00:20:18.704 financial position? And I'm especially interested in this thought that you might 00:20:18.790 --> 00:20:24.427 want to take a greater view on French politics, want to have the ability to express 00:20:24.477 --> 00:20:31.303 yourself, is this indeed the case? And in what way would you be doing this? 00:20:31.377 --> 00:20:37.341 Would you be standing for office? Or would you be just commenting on what's 00:20:37.557 --> 00:20:38.757 happening? 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 00:20:48.814 --> 00:20:55.409 stage. But on your first question, there. Was that debate, you know, we look at 00:20:55.460 --> 00:21:00.708 numbers, we look at increased risk, we look at the final. 00:21:00.837 --> 00:21:04.908 Tightening as a result of the long-term interest rates. 00:21:04.977 --> 00:21:12.510 And pros and cons and there were views along the lines of maybe now, why not. 00:21:12.597 --> 00:21:17.937 There was a unanimous decision at the end of the discussion that we were in a 00:21:18.057 --> 00:21:24.217 sufficiently good position to actually wait. 00:21:24.297 --> 00:21:30.837 For additional information and the inter-meeting period will be information-rich. 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 00:21:35.157 --> 00:21:40.809 few weeks that will actually help us determine whether the. 00:21:40.917 --> 00:21:48.472 Situation that we see now, which could have warranted a hike, is going to be 00:21:48.648 --> 00:21:54.366 confirmed. And in that case, the sense of direction is quite clear. 00:21:54.657 --> 00:21:58.120 So the list of information that we will have. 00:21:58.197 --> 00:22:04.748 A new set of staff projections, September sorry, September. 00:22:04.857 --> 00:22:08.689 Not September, December will be a projection exercise. 00:22:08.757 --> 00:22:15.623 Two new inflation prints. Quarter to 3 GDP, Q3 unemployment compensation per 00:22:15.674 --> 00:22:20.557 employee and negotiated wages, two unemployment readings, two industrial production 00:22:20.613 --> 00:22:25.383 releases the November PMIs, two rounds of bank interest rate statistics for both 00:22:25.437 --> 00:22:29.924 September and October. So as you see, there is a mine of information and data that 00:22:29.988 --> 00:22:34.920 we will receive in the weeks to come. And this will be particularly relevant with 00:22:34.965 --> 00:22:40.662 underlying inflation. Because while underlying inflation, as has not been very 00:22:40.710 --> 00:22:47.375 informative at the beginning of the shock, the more we progress into the shock, the 00:22:47.457 --> 00:22:52.557 more informative-rich the underlying inflation indicators are. 00:22:52.737 --> 00:22:55.374 They are beginning to be more informative. 00:22:55.437 --> 00:23:01.036 And broadly, you know, they haven't changed. 00:23:01.137 --> 00:23:04.380 There's a specific mention to that effect in the monetary policy statement. 00:23:04.437 --> 00:23:09.887 But with those six weeks of additional information, we will have a lot more in 00:23:09.942 --> 00:23:14.104 relation to underlying inflation. And that's what we will be particularly attentive 00:23:14.150 --> 00:23:16.437 to. Not to the detriment on inflation outlook. 00:23:16.497 --> 00:23:19.198 We will continue to look at inflation outlook. 00:23:19.257 --> 00:23:24.452 We will continue to look at the risks. We will most likely produce scenarios again 00:23:24.591 --> 00:23:29.980 in December. And we will, of course, look at the dynamics and the strength of 00:23:30.033 --> 00:23:34.658 monetary policy transmission. But underlying inflation will probably take a 00:23:34.759 --> 00:23:41.028 particular standing in the three-prong approach that we apply to our monetary policy 00:23:41.097 --> 00:23:42.297 decision. 00:23:44.217 --> 00:23:46.748 Our next question is for Alex Weber from Bloomberg. 00:23:46.797 --> 00:23:47.997 Alex, please. 00:23:51.297 --> 00:23:56.759 Thank you very much. My first question is on the French bond markets in particular. 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 00:24:00.775 --> 00:24:05.091 of questions about whether and when the ECB should get involved. 00:24:05.157 --> 00:24:09.237 Can you tell us a bit about how which metrics you're watching specifically? 00:24:09.297 --> 00:24:12.911 Is it more about the speed of the adjustment, the absolute level of the spread, or 00:24:12.951 --> 00:24:16.415 is it actually about contagion to other countries? 00:24:16.497 --> 00:24:18.797 My second question also in the same vein as my colleagues. 00:24:18.837 --> 00:24:21.597 I'm sorry about your departure. You're now leaving. 00:24:21.897 --> 00:24:23.097 Thank you. 00:24:23.097 --> 00:24:26.880 You're now leaving at the beginning of a year with a lot of national elections, 00:24:26.934 --> 00:24:31.864 especially in your home country. Did you consider whether this particular timing 00:24:31.955 --> 00:24:35.157 could undermine the independence of the ECB? 00:24:38.937 --> 00:24:43.553 Thank you very much for both questions. And I will entertain your second question 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 00:24:50.097 --> 00:24:55.755 and well-articulated response because this is a matter which I had assumed you might 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 00:25:05.404 --> 00:25:09.417 at the tenure, but we look at the entire curve. 00:25:09.477 --> 00:25:14.193 But say the long end of the curve across the world, not specifically for a member 00:25:14.235 --> 00:25:18.881 state, not specifically for the whole of Europe, but across the world, as reason 00:25:18.968 --> 00:25:23.896 significantly. If you compare numbers, say you take February and now you have a 00:25:23.945 --> 00:25:30.640 significant number of basis points that have increased these these. 00:25:30.717 --> 00:25:34.691 Corporate bonds and and this is caused by multiple factors. 00:25:34.737 --> 00:25:37.201 This is called caused by expected inflation. 00:25:37.257 --> 00:25:40.607 This is caused by expected interest rate path. 00:25:40.737 --> 00:25:47.855 And we. Think, although there is a very interesting blog that I highly recommend, we 00:25:47.933 --> 00:25:54.091 think that the debt issuance by some of the hyperscalers without really crowding out 00:25:54.214 --> 00:25:59.699 yet but increasing the volume of long-term bonds that are issued also plays a role. 00:25:59.757 --> 00:26:05.046 But that has affected the entire the entire market. 00:26:05.217 --> 00:26:08.777 Second observation, and that applies also to all countries. 00:26:08.877 --> 00:26:15.734 Those countries with the high debt, with high debt, have to factor into their fiscal 00:26:15.837 --> 00:26:22.317 policy plans the fact that interest rates are higher and will probably remain 00:26:22.377 --> 00:26:23.337 higher. 00:26:23.337 --> 00:26:24.537 For a period of time. 00:26:26.757 --> 00:26:32.708 In Europe, if you apply that principle, what it means is that policy measures have 00:26:32.784 --> 00:26:40.197 to be adopted as part of a plan that is always submitted to Brussels. 00:26:40.317 --> 00:26:46.901 And that has to comply with the European fiscal framework. 00:26:47.097 --> 00:26:51.817 So we will be looking at all that, obviously, and some. 00:26:51.897 --> 00:26:56.826 Member states face particular challenges I would say that it narrows down and it 00:26:56.877 --> 00:27:04.735 boils down to those countries that have a high level of debt in general. 00:27:04.917 --> 00:27:11.526 But I would also add that should market developments threaten the smooth 00:27:11.577 --> 00:27:17.722 transmission of our monetary policy, including through unwarranted and disorderly 00:27:17.796 --> 00:27:22.544 market movements, we have instruments available to respond. 00:27:22.677 --> 00:27:26.811 And the criterias and conditions under which this applies, are well known. 00:27:26.877 --> 00:27:30.162 They are published. And I'm sure you know them. 00:27:30.237 --> 00:27:31.437 Thank you. 00:27:33.177 --> 00:27:35.600 Stefan Rakius of Handelsblatt next, please. 00:27:35.637 --> 00:27:36.837 Stefan. 00:27:38.637 --> 00:27:43.284 Thank you for the floor. Good afternoon. My first question is on monetary policy you 00:27:43.333 --> 00:27:47.766 mentioned that you are still in the phase of measured tightening. 00:27:47.877 --> 00:27:53.266 That said, why would there be any doubt that the ECB will stick to the quarterly 00:27:53.322 --> 00:27:59.452 pace and hike again in December? And my second question, also on a personal note, 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? 00:28:05.577 --> 00:28:06.777 Thanks. 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 00:28:15.135 --> 00:28:22.151 still on this measured response to the current situation. 00:28:22.257 --> 00:28:30.884 And as I said earlier on, we will assess the development of geopolitical. 00:28:30.957 --> 00:28:38.564 Situation, the development of energy prices, the development of tightening of the 00:28:38.679 --> 00:28:46.404 the cost of financing, and any other facts, figures, that are relevant to compare 00:28:46.460 --> 00:28:52.751 the situation as we have it now with what we receive next December. 00:28:52.857 --> 00:28:59.157 And as I said, unless there were major development, the direction of travel is quite 00:28:59.210 --> 00:29:08.440 clear. For all of us. Is there a case for reducing our activity to the quarterly 00:29:08.508 --> 00:29:09.417 meetings? 00:29:09.417 --> 00:29:10.617 No. 00:29:11.097 --> 00:29:14.477 No. We have never restricted ourselves to that. 00:29:14.577 --> 00:29:20.652 It is it is true that we are more data-rich at. 00:29:20.757 --> 00:29:26.305 Those projection meetings, but we are also capable of understanding what staff is 00:29:26.386 --> 00:29:30.941 explaining to us, the information they're collecting, the analysis that they they 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 00:29:38.646 --> 00:29:44.261 restricted to quarterly meetings. And we have no plan to restrict the number of 00:29:44.304 --> 00:29:46.197 meetings that we'll deal with monetary policy. 00:29:51.657 --> 00:29:54.493 Next question. Olaf Störbeck of Financial Times. 00:29:54.537 --> 00:29:55.737 Olaf, please. 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 00:30:04.979 --> 00:30:11.662 implications of your decision today. So you are the eighth of 26 executive board 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 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 00:30:22.497 --> 00:30:23.337 is the. 00:30:23.337 --> 00:30:24.957 Sorry. Can you repeat your question? You. 00:30:25.257 --> 00:30:30.697 Eight of the the total exec 26 executive board members, including you, will have 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 00:30:37.217 --> 00:30:41.464 that does this suggest there there are yeah flaws in the governance? 00:30:41.517 --> 00:30:45.897 Is are ideas too long? You said in this Bloomberg interview early at the start of 00:30:45.937 --> 00:30:49.054 the year, you initially thought it's a five-year term. 00:30:49.137 --> 00:30:52.500 So yeah, I would be interested in your thought on that. 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 00:31:01.849 --> 00:31:05.586 in government bond yields doing some of the ECB's work at the moment? 00:31:05.637 --> 00:31:10.744 And is the need for further interest rate increases reduced because of that? 00:31:10.857 --> 00:31:12.057 Thanks. 00:31:13.977 --> 00:31:18.283 Well, thank you on your first question. I will only address the the issue of 00:31:18.371 --> 00:31:24.247 governance. I think the governance of the ECB has proven its solidity. 00:31:24.357 --> 00:31:29.395 We have had transition in the past. Business continuity has always been the mantra 00:31:29.445 --> 00:31:31.908 for this institution. It has never failed. 00:31:31.977 --> 00:31:37.328 And I have every confidence that it will continue to apply the principles of 00:31:37.483 --> 00:31:44.505 continuity of mission-focused, determined action to reach the target of our 2% 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 00:31:49.977 --> 00:31:56.857 focused, and I will be working without any reservation, without any excuses. 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 00:32:02.697 --> 00:32:07.437 one. Of the phenomenons that we have observed, which have changed the picture since 00:32:07.497 --> 00:32:17.817 September. Because yes, you're right, long-term Yields has. 00:32:17.877 --> 00:32:23.346 Increased, across the board, so more so in some countries, less so in others. 00:32:23.397 --> 00:32:25.331 And then you begin looking at the spreads. 00:32:25.377 --> 00:32:32.244 And we look at everything. But that has been a qualifying element, if you will, to 00:32:32.375 --> 00:32:45.024 the increase in energy prices. So energy prices have increased inflation, long-term 00:32:45.094 --> 00:32:50.337 financing costs have qualified the magnitude of that increase, and it's in those 00:32:50.397 --> 00:32:55.235 circumstances which we will be very attentive to in the weeks to come. 00:32:55.317 --> 00:32:59.671 And with another special focus on underlying inflation, that we will make our 00:32:59.740 --> 00:33:00.940 decision in December. 00:33:04.497 --> 00:33:07.551 Next question, Andres Stumpf of Expansion in Spain. 00:33:07.617 --> 00:33:08.817 Andres, please. 00:33:09.897 --> 00:33:17.059 Hello. Madame President, I I would like to know if this no hiking thing, because of 00:33:17.157 --> 00:33:22.765 tighter financial conditions in the markets, is a one thing only, this for this 00:33:22.846 --> 00:33:28.931 meeting, or if it will happen to continue throughout November. 00:33:29.037 --> 00:33:35.125 The ECB could not hike or or keep the interest rate unchanged again because of that. 00:33:35.217 --> 00:33:40.285 And a second question for the pile of later. 00:33:40.497 --> 00:33:46.787 The mandates in the European Council and the European Parliament are going to be 00:33:47.157 --> 00:33:53.258 discussed in before you leave. Would you be interested at all or not applying to 00:33:53.349 --> 00:33:57.237 those positions? Thank you. Just to keep you near. 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 00:34:03.774 --> 00:34:11.740 with the other questions. So I think you're right to actually characterize our 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 00:34:15.588 --> 00:34:20.483 hiking decision. Because we we did ask ourselves the question, and there was a 00:34:20.545 --> 00:34:26.207 number of us, you know, assessing and and pondering whether it was warranted as of 00:34:26.277 --> 00:34:33.187 now already, or whether we needed to confront the current assessment with future 00:34:33.297 --> 00:34:40.705 data numbers elements that we would assess against our three-prong monetary policy 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 00:34:47.455 --> 00:34:51.330 me saying it, but we decide meeting by meeting. 00:34:51.417 --> 00:34:58.896 So it it does not indicate that we will not be hiking in November. 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 00:35:03.960 --> 00:35:13.568 previous question, if. The assessment that we have today is not infirmed by 00:35:13.645 --> 00:35:17.157 significant developments, the direction of travel is clear. 00:35:21.957 --> 00:35:24.725 Next question, Jean-Philippe Lacour of Agence France-Presse. 00:35:24.777 --> 00:35:25.857 Jean-Philippe, please. 00:35:25.857 --> 00:35:26.757 Before I can. 00:35:26.757 --> 00:35:27.957 Hello, Madam President. 00:35:28.257 --> 00:35:29.457 Hello, Mr President. 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 00:35:33.837 --> 00:35:37.968 the answering of the bunch of questions we had today. 00:35:38.097 --> 00:35:42.822 What does really concern you the most in France and your home country? 00:35:42.897 --> 00:35:45.788 I certainly not only the high yields for the moment. 00:35:45.837 --> 00:35:50.753 So could you maybe describe what are the main concerns? 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 00:35:57.734 --> 00:36:02.327 situation, and what will be yes the the the nature of your intervention? 00:36:02.397 --> 00:36:09.225 Do you intend to support actively maybe one candidate or, if so, which one? 00:36:09.297 --> 00:36:14.365 And the last maybe very leger questions, but when did you inform your grandchildren 00:36:14.418 --> 00:36:15.618 about your decision? 00:36:19.737 --> 00:36:20.937 I remember that. 00:36:22.437 --> 00:36:23.637 Them too. Them too. 00:36:25.137 --> 00:36:25.617 Okay. 00:36:25.617 --> 00:36:27.477 Are there other questions on monetary policy? 00:36:28.797 --> 00:36:34.317 Yes. Then please Viggo Risvik of the Dutch Daily Telegraaf, please. 00:36:38.397 --> 00:36:43.210 Thank you. I was wondering, also, about France a bit. 00:36:43.257 --> 00:36:48.726 So it's a bit on defense of monetary policy, but given. 00:36:48.777 --> 00:36:54.733 The current situation in France, besides the spreads rising, not all that much has 00:36:54.797 --> 00:37:01.052 changed in the last six months. High debt has been known for quite some time. 00:37:01.137 --> 00:37:07.806 Yet now there are some talks about the possibility of another euro crisis. 00:37:07.977 --> 00:37:12.257 I was wondering what your thoughts are on that. 00:37:12.537 --> 00:37:18.046 And I do have a second question also about your departure. 00:37:18.177 --> 00:37:24.393 Now in the next six in the first six months of 2027, three experienced board members 00:37:24.454 --> 00:37:30.625 will leave the ECB. I was wondering how you will think about the continuity of the 00:37:30.689 --> 00:37:31.917 ECB in that regard. 00:37:37.317 --> 00:37:46.305 Thank you thank you very much. On on your question regarding the. 00:37:46.857 --> 00:37:50.182 I think I will I will take Monsieur Lacour's question regarding what concerns me 00:37:50.225 --> 00:37:54.599 later on, because it applies not to one country, it applies to all countries. 00:37:54.657 --> 00:38:02.961 So have there been changes in the last six months where they clearly have been 00:38:03.037 --> 00:38:07.590 changes? They're the ones that apply to all countries? 00:38:07.677 --> 00:38:10.553 The ones related to energy prices in general? 00:38:10.617 --> 00:38:15.233 The ones related to financing and particularly the financing costs at the long at 00:38:15.291 --> 00:38:22.189 the long end of the curve? And obviously we are mindful of all such developments. 00:38:22.317 --> 00:38:25.748 Do I fear that there will be developments coming up? 00:38:25.857 --> 00:38:31.085 There will be developments, obviously. But this is not going to deter us, European 00:38:31.150 --> 00:38:35.156 Central Bank, from delivering on our mission of price stability. 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. 00:38:40.197 --> 00:38:41.397 Thank you. 00:38:44.577 --> 00:38:48.978 Turning to turning to our online participants, I'd like to give the floor to Silvia 00:38:49.017 --> 00:38:52.557 Berzoni of Cora Media. Silvia, over to you, please. 00:38:57.117 --> 00:38:58.317 Good afternoon, President. 00:38:59.937 --> 00:39:00.357 Good afternoon. 00:39:00.357 --> 00:39:04.274 I think we are all I think we are all sorry for your departure. 00:39:04.317 --> 00:39:09.642 So two questions, if I may. The first one is what worries you the most today? 00:39:09.717 --> 00:39:13.239 If it's inflation or financial fragmentation. 00:39:13.317 --> 00:39:18.943 And in September, French sovereign bond holdings declined significantly less than 00:39:19.029 --> 00:39:23.530 Italians and Germans under the quantitative tightening program. 00:39:23.577 --> 00:39:30.464 So as the pattern continued in October, and is this purely a mechanical rolloff? 00:39:30.537 --> 00:39:31.737 Thank you very much. 00:39:32.877 --> 00:39:37.054 Well, thank you so much. And thank you I will miss you, actually. 00:39:37.137 --> 00:39:42.717 So what worries me most is anything that affects price stability. 00:39:42.777 --> 00:39:49.690 Because we are fixated on on our mandate, and price stability is, you know, our our 00:39:49.797 --> 00:39:56.842 compass. So obviously inflation matters a lot, but price stability does not take 00:39:56.888 --> 00:40:01.689 place without financial stability. So we have to look out for any threats to 00:40:01.742 --> 00:40:04.623 financial stability and any threat to price stability. 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 00:40:10.594 --> 00:40:17.891 price stability mandate that we have. I think you had another question now that I 00:40:17.937 --> 00:40:22.607 think of it. It was after you told me that you would miss me. 00:40:22.677 --> 00:40:23.577 What was the second? 00:40:23.577 --> 00:40:27.279 It's the French bond holdings declining and whether it's purely a mechanical 00:40:27.341 --> 00:40:28.797 rolloff. That's the one that I've noted. 00:40:31.857 --> 00:40:33.357 I'm sorry. I missed the second part. 00:40:34.377 --> 00:40:35.577 You want to repeat it, perhaps? 00:40:36.657 --> 00:40:43.077 Yeah. Yeah. It does exactly. In September, French sovereign bond holdings. 00:40:43.257 --> 00:40:43.797 Oh, yeah, yeah, yeah. 00:40:43.797 --> 00:40:47.277 Declined. Yeah. Yeah, yeah. So if this is just a mechanical. 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 00:40:52.137 --> 00:40:58.752 for all redemption. Of all bonds coming up for all countries across the member 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 00:41:05.577 --> 00:41:09.397 letting. Redemption take place without purchasing. 00:41:09.477 --> 00:41:14.016 And without replacing those bonds that that come for redemption, I also know for a 00:41:14.060 --> 00:41:18.512 fact that that's from previous life, that November is is a pretty heavy month when 00:41:18.566 --> 00:41:21.895 it comes to France in particular. But it's all mechanical. 00:41:21.957 --> 00:41:25.998 There is no behind-the-scene, you know, arrangement to tweak here, tweak there, 00:41:26.046 --> 00:41:29.637 rebalance, and and cut corners. We we just apply the principle of no redemption. 00:41:33.237 --> 00:41:34.557 Would you like to address the other question? 00:41:34.737 --> 00:41:41.522 Okay. So allow me not to necessarily dig into each and every specific aspect of your 00:41:41.608 --> 00:41:46.609 of your question in relation to my decision to step down. 00:41:46.677 --> 00:41:53.046 So my decision is to step down from my position as President of the European Central 00:41:53.105 --> 00:41:58.180 Bank after the February monetary policy governing council. 00:41:58.257 --> 00:42:01.923 So you will have the great pleasure, and I will have the great pleasure of seeing 00:42:01.970 --> 00:42:07.199 those of you who care to come twice: once in December, once in February. 00:42:07.257 --> 00:42:11.449 So we are not done. We will continue to see each other. 00:42:11.517 --> 00:42:19.587 And I'm delighted about that. There is never a good time to. 00:42:19.737 --> 00:42:25.325 Leave. But it's embedded in the governance of the ECB that presidents, board 00:42:25.396 --> 00:42:29.675 members, have to leave because they cannot be up for renewal. 00:42:29.757 --> 00:42:36.049 So the end of my term in any event would have been October 2027. 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 00:42:42.897 --> 00:42:49.493 of October is, as I have said to colleagues, members of staff, and governors, 00:42:49.557 --> 00:42:56.798 because I want to have the freedom of speech, the freedom of expression, and the 00:42:56.865 --> 00:43:02.671 freedom to engage on matters that are not monetary policy matters. 00:43:02.757 --> 00:43:08.087 As you all know, as President of the European Central Bank and my colleagues on the 00:43:08.145 --> 00:43:12.209 executive boards and on the governing council are under pretty much the same 00:43:12.292 --> 00:43:16.991 constraints, we have an obligation of neutrality. 00:43:17.097 --> 00:43:21.101 We comment on the situation with the focus on monetary policy. 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 00:43:25.917 --> 00:43:35.112 the price we pay for being independent. At this time, in relation to many corners of 00:43:35.177 --> 00:43:41.774 the world, not just European corners, not just Europe, I think that my voice can 00:43:41.866 --> 00:43:48.454 help, my action can help in relation to principles that are dear to my heart. 00:43:48.597 --> 00:43:55.808 One of those principles because I think Jean-Philippe Lacour, you asked me. 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 00:44:01.262 --> 00:44:07.228 that neutrality at the present time. And I'm interested in the truth. 00:44:07.317 --> 00:44:14.110 And I see the truth being very often damaged. 00:44:14.337 --> 00:44:23.684 Contradicted. By Misrepresentation, and from the position that I have had for the 00:44:23.742 --> 00:44:25.137 last 20-plus years of my 00:44:25.377 --> 00:44:30.135 life, in economic and financial matters, on the international scene as managing 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 00:44:35.171 --> 00:44:39.246 the people will listen or not is another story. 00:44:39.417 --> 00:44:42.050 But I feel that I should say those things. 00:44:42.117 --> 00:44:48.036 And I cannot do so in my current position. 00:44:48.177 --> 00:44:49.317 Voilà. 00:44:49.317 --> 00:44:53.727 Thank you. That concludes our press conference. 00:44:53.817 --> 00:44:54.657 And. 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, 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 00:45:04.324 --> 00:45:10.062 perfect continuity of business. A process has already started. 00:45:10.137 --> 00:45:16.144 To identify my successor. There are plenty of excellent candidates, much better than 00:45:16.215 --> 00:45:20.489 me, actually. So don't worry about continuity of business. 00:45:20.577 --> 00:45:23.919 Don't worry about, you know, decision-making in limbo. 00:45:23.997 --> 00:45:29.858 No. Absolutely not. The institution is solid, strong. 00:45:29.937 --> 00:45:33.390 Like a rock. And it will continue being so. 00:45:33.477 --> 00:45:34.617 Thank you. 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 00:45:39.357 --> 00:45:40.557 conference. Thank you very much.