Brussels Live · Press conference 2026-10-29 Transcribed and translated automatically from the original sound. Mistakes are possible. Machine translation. The original is authoritative. 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. [14:46:43] Speaker 1 [EN] Good afternoon, and welcome to our press conference, with President Lagarde, and Vice President Vučić. My name is Wolfgang Preussel. As always, we are joined by journalists who are connected online; if they ask a question, I would like to ask them to turn on their cameras and microphones. And with that, I hand over to you, President Lagarde. [14:47:06] Speaker 2 [EN] Thank you very much, Wolfgang, and good afternoon, good day to all of you. The Vice President and I welcome you to our press conference. The Governing Council today decided to keep the three key ECB interest rates unchanged. Energy prices have continued to rise. Posing upside risks to the inflation outlook and downside risks to the growth outlook. While the full effects of the energy shock are still unfolding, underlying inflation has remained broadly stable so far, and wages do not show a material response at this stage. The increased magnitude and duration of the energy shock, as well as the implications for indirect and second-round effects, are likely to drive up inflation and lower growth. Financing conditions have tightened since our last meeting. Which is likely to weigh on inflation and growth. We are committed to setting monetary policy to ensure that inflation stabilizes at our 2% target in the medium term. We remain well-positioned to navigate the current elevated uncertainty. We will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. In particular, our interest rate decisions will be based on our assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission. We are not pre-committing to a particular rate path. The decisions taken today are set out in a press release that is available on our website. And I will now outline in more detail how we see the economy and inflation developing and will then explain our assessment of financial and monetary conditions. The incoming data suggest that the euro area economy continued to expand in the third quarter of the year. Services have recovered, after weakening at the start of the Middle East conflict. Manufacturing, digital services, and exports are benefiting from AR-related business investment. Government spending on infrastructure and defense is also supporting activity. [14:49:40] Speaker 2 [EN] These factors should continue to underpin growth in the near term. At the same time, renewed energy price increases have hit consumer confidence and higher financing costs are likely to weigh on growth. The unemployment rate remained at 6.4% in August. Growth in employment and the labor force remains subdued, while productivity has gradually picked up. Over the medium term, a recovery in confidence and real incomes driven by gradually declining energy prices and a robust labor market should bolster domestic demand. Investment in AI-related activities and government spending on infrastructure and defense should also continue to support growth. Export growth should pick up on the back of strengthening foreign demand. Higher potential growth requires structural reforms and has to be underpinned by sound public finances. Fiscal sustainability is a crucial anchor for broader economic stability. Fiscal responses to the energy shock should be temporary targeted and tailored. Simplifying and harmonizing rules across the EU's single market, accelerating the energy transition, and completing the savings and investment union are key building blocks to make our economy more dynamic and resilient. As the process for agreeing on the legal framework for the digital euro moves into its final stage, we reiterate the importance of reaching agreement on the single currency package as quickly as possible. Inflation rose to 3.8% in September, from 3. 2% in August. Energy price inflation increased markedly, to 18. 9%, from 14.3% in August. Diesel and petrol prices reached new peaks in September, in part reflecting elevated refining margins. Inflation excluding energy increased to 2. 3% in September, from 2.1% in August. Food price inflation increased to 1.3%, from 1. 1%. Services inflation increased to 3.2% in September, from 3% in August. [14:52:24] Speaker 1 [EN] While goods inflation declined to 1.1%, from 1. 2%. [14:52:31] Speaker 2 [EN] Indicators of underlying inflation have remained broadly stable. Although the early stages of the pricing chain point to upward pressures. Wage pressures remain moderate, compensation per employee grew by 3. 3% in the second quarter, down from 3. 6% in the first quarter. While rising productivity has helped contain the growth of unit labor costs. Our forward-looking wage tracker suggests that negotiated wage growth will fluctuate between 2. 5% and 2.8% in the remaining month of 2026, and average 2.6% in the first three quarters of 2027. Inflation expectations over shorter horizons have risen, but most measures of longer-term inflation expectations stand at around 2%, supporting the stabilization of inflation around target in the medium term. Energy prices have increased, beyond the baseline. [14:53:45] Speaker 1 [EN] Beyond the baseline path foreseen in the September ECB staff projections. [14:53:51] Speaker 2 [EN] This is likely to raise inflation further in the near term, and keep headline inflation well above target over the coming quarters. Thereafter, declining energy inflation together with the effects of higher interest rates should support the return of inflation to target. The risks to the growth outlook are to the downside. This is due in particular to the Middle East conflict and recent developments in Russia's unjustified war against Ukraine. Continued disruption of energy supplies could cause energy prices to rise further and for longer than currently expected. This would weigh on real incomes, spending, and investment. A worsening of global financial market sentiment, or intensifying spillovers in global bond markets, could tighten financing conditions and thereby dampen demand. Fiscal uncertainty, may also further tighten financing conditions and weaken confidence, thereby lowering consumption and investment. A resurgence of trade tensions between major economies could further disrupt supply chains, reduce exports, and weaken consumption and investment. By contrast, growth could turn out to be higher, if the economy and energy markets were to adapt more quickly than expected to the disruption caused by the ongoing conflicts or if these conflicts were resolved sustainably. Moreover, the adoption of new technologies by euroarea firms and governments spending on infrastructure and defense, as well as reforms to enhance productivity and complete the EU's single market, may drive up growth by more than expected. The risks to the inflation outlook are to the upside. This is due in particular to the Middle East conflict and recent developments in Russia's unjustified war against Ukraine. The energy shock could intensify further, and its effects on other prices and wages could be stronger than currently expected. Gas prices, in particular, could increase if supplies disrupted further or an unusual cold winter coincides with low storage levels. The longer energy prices stay high, the more likely they are to drive up broader inflation, through [14:56:30] Speaker 2 [EN] indirect and second-round effects. Renewed trade tensions could give rise to more fragmented global supply chains, curtail the supply of critical raw materials, and worsen capacity constraints in the euroarea economy. Extreme weather events, potentially reinforced by intensifying El Niño conditions, and the unfolding climate and nature crisis, more broadly, could drive up food prices by more than expected. [14:57:04] Speaker 1 [EN] By contrast, inflation could turn out to be lower if ongoing geopolitical conflicts were resolved sustainably, or if indirect or second-round effects from higher energy prices proved less pronounced than anticipated. [14:57:21] Speaker 2 [EN] More volatile and risk-averse financial markets, together with higher long-term interest rates, could weigh on demand, and thereby lower inflation as well. Financial conditions now. [14:57:36] Speaker 1 [EN] Financial conditions have tightened, since our previous meeting. [14:57:42] Speaker 2 [EN] Interest rates have broadly moved up, while stock prices have fallen. [14:57:47] Speaker 1 [EN] The cost of market-based debt for firms rose to 4. 1% in August, from 4% in July, while bank lending rates for firms remained at 3.8%. [14:58:02] Speaker 2 [EN] Growth in bank lending to firms slowed to an annual rate of 4. 2% in August and September, from 4.4% in July. [14:58:12] Speaker 1 [EN] While corporate bond issuance grew at an annual rate of 4. 2% in September, up from 3.8% in August and 3. 5% in July. [14:58:25] Speaker 2 [EN] Credit standards for loans to firms tightened in the third quarter, as reported in our latest bank lending survey, with banks citing concern about the economic risks faced by their customers. [14:58:40] Speaker 1 [EN] Despite higher financing needs for inventories, and working capital, corporate loan demand declined, reflecting in particular higher interest rates. [14:58:52] Speaker 2 [EN] Mortgage rates rose to 3.8% in August, from 3. 5% in July, while mortgage lending growth edged down to 3% in September. [14:59:05] Speaker 1 [EN] Credit standards for mortgage lending were unchanged in the third quarter, whereas demand for mortgages declined substantially, given higher interest rates. [14:59:16] Speaker 2 [EN] So, in conclusion, the governing council today decided to keep the three key ECB interest rates unchanged. [14:59:23] Speaker 1 [EN] We are committed to setting monetary policy to ensure that inflation stabilizes at our 2% target in the medium term. [14:59:31] Speaker 2 [EN] We will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. [14:59:39] Speaker 1 [EN] Our interest rate decisions will be based on our assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission. [14:59:55] Speaker 2 [EN] We are not pre-committing to a particular rate path. [14:59:59] Speaker 1 [EN] And in any case, we stand ready to adjust all of our instruments within our mandate, to ensure that inflation stabilizes sustainably at our medium-term target, and to preserve the smooth functioning of monetary policy transmission. [15:00:14] Speaker 2 [EN] We are now ready to take your questions. [15:00:18] Speaker 3 [EN] First question goes to our neighbor, Vice President of CNBC. Please. [15:00:22] Speaker 4 [EN] Thank you very much. President Lagarde, I have two questions. One on monetary policy. The first one on monetary policy is that, for the first time in, I don't know, how long, the mentioning of second-round effects in your press release was quite striking. So does it also mean that the markets bought right to expect a rate hike in December, because clearly there is now a risk of second-round effects? Second question is, how do you marry your position, which was which you said I think it was spring this year, that the captain stays on the ship when there are clouds on the horizon, given that the euroarea is probably in a worse situation than in spring? Looking at France, looking at the inflation picture, and perhaps you can tell us more about your motivation. Thank you. [15:01:11] Speaker 1 [EN] Thank you very much for your two questions. And I would suggest that we deal, first and foremost, with the monetary policy statement and the monetary policy decision questions, and that if there are additional questions, in relation to me, for instance, that we keep that for the end, because the real order of business here is the monetary policy. So, your second question will I'll deal with it later in the press conference, if that's okay with you. So,. You are right that second-round effects and the risk of second-round effects is something that we have paid very special attention to. I think I said that in previous press conferences, as inflation rises, as the risk to inflation has increased, we pay special attention to the direct effect. We see it clearly, to the indirect effect. We have seen an increase of those indirect effects, and to the secondary effects. Which would require a particular policy decision. We are very attentive and, at this point in time, we are not seeing risk of second-round effects in addition to what is already included in the projections. So, if you will, the projections that were prepared in September did include the risk of second-round effects. So we are looking very attentively to that and for the for the moment, as I think we say very clearly in the monetary policy statement, we do not see material risk of second-round effect at the moment. But give me the opportunity because I deferred your second question to a bit later, to give you a little bit of flavor of the debate that we had. [15:03:08] Speaker 2 [EN] Because while we were very attentive to second-round effects, and in particular to the evolution of wages, to the wage tracker, to the compensation per employee projections, to every instrument that we have to measure wages, in all sectors, including the opening position of unions in the coming collective bargaining bargaining agreement discussions, we have also looked at what has really significantly changed compared to last September. And the two key changes that we have seen is, first and foremost, the energy prices. And on that front, it's a combination of oil prices, but more importantly, petrol, fuel, gas, and of course refining margins. And that has increased significantly. It's well reflected in the energy inflation numbers, 18. 8, if I recall, as compared to. Lower number in September. So a clear increase there. But another new development that we have observed as well since September is the cost of long-term financing. Which, as indeed increased, and, you know, of course we look at numbers, and the average 10-year sovereign yields has risen by around 35%. Sorry, 35 basis points since our last cutoff for the September projections. So if you combine these two factors, actually the governing council debated whether a hike was appropriate. But on the basis of the uncertainty that accumulates, and that rises as well, on the basis of underlying inflation that has broadly remained unchanged,. [15:05:11] Speaker 1 [EN] The governing council unanimously decided that we were well positioned enough at this stage to hold, and that a measured approach at this point in time remained appropriate. [15:05:27] Speaker 2 [EN] So that's the that's the discussion that we had over the last few hours, as well as yesterday afternoon. I think it gives you the flavor of, you know, dissecting inflation, as much as we could, and the consequences of inflation on wages in particular, but also the overall changes that we have seen and always applying our three-prong approach to our monetary stance, monetary policy stance. [15:05:55] Speaker 1 [EN] Thank you. [15:05:57] Speaker 3 [EN] Next question, Balazs Korányi of Reuters. Balazs, please. [15:06:03] Speaker 1 [EN] Thank you very much. I'm afraid one of my questions is also going to get bumped to the back of the queue. [15:06:09] Speaker 2 [EN] No, not suggesting that we bump, but I'm suggesting that we focus all the question on monetary policy first and then the others. [15:06:15] Speaker 1 [EN] Given what you said about upside risk to inflation, you just said the middle path seems appropriate. Was there also consensus on this in the governing council? Because you mentioned there was a discussion of raising interest rates. So was there unanimity on this as well? And given this upside risk, do you think the ECB will need to keep raising interest rates at some point in the future? Second question is kind of similar to Annette's question. I'm also curious about the whys. Why would you leave Europe's most powerful financial position? And I'm especially interested in this thought that you might want to take a greater view on French politics, want to have the ability to express yourself, is this indeed the case? And in what way would you be doing this? Would you be standing for office? Or would you be just commenting on what's happening? [15:07:25] Speaker 2 [EN] So you were right, Balazs. The second question, I will I will address it at a later stage. But on your first question, there. Was that debate, you know, we look at numbers, we look at increased risk, we look at the final. Tightening as a result of the long-term interest rates. And pros and cons and there were views along the lines of maybe now, why not. There was a unanimous decision at the end of the discussion that we were in a sufficiently good position to actually wait. For additional information and the inter-meeting period will be information-rich. I'm going to take you through the list of what we're going to receive in the next few weeks that will actually help us determine whether the. Situation that we see now, which could have warranted a hike, is going to be confirmed. And in that case, the sense of direction is quite clear. So the list of information that we will have. A new set of staff projections, September sorry, September. Not September, December will be a projection exercise. Two new inflation prints. Quarter to 3 GDP, Q3 unemployment compensation per employee and negotiated wages, two unemployment readings, two industrial production releases the November PMIs, two rounds of bank interest rate statistics for both September and October. So as you see, there is a mine of information and data that we will receive in the weeks to come. And this will be particularly relevant with underlying inflation. Because while underlying inflation, as has not been very informative at the beginning of the shock, the more we progress into the shock, the more informative-rich the underlying inflation indicators are. They are beginning to be more informative. And broadly, you know, they haven't changed. There's a specific mention to that effect in the monetary policy statement. But with those six weeks of additional information, we will have a lot more in relation to underlying inflation. And that's what we will be particularly attentive to. Not to the detriment on inflation outlook. [15:09:59] Speaker 2 [EN] We will continue to look at inflation outlook. We will continue to look at the risks. We will most likely produce scenarios again in December. And we will, of course, look at the dynamics and the strength of monetary policy transmission. But underlying inflation will probably take a particular standing in the three-prong approach that we apply to our monetary policy decision. [15:10:27] Speaker 3 [EN] Our next question is for Alex Weber from Bloomberg. Alex, please. [15:10:34] Speaker 1 [EN] Thank you very much. My first question is on the French bond markets in particular. So with the kind of spread widening we've seen in recent weeks, there's been a lot of questions about whether and when the ECB should get involved. Can you tell us a bit about how which metrics you're watching specifically? Is it more about the speed of the adjustment, the absolute level of the spread, or is it actually about contagion to other countries? My second question also in the same vein as my colleagues. I'm sorry about your departure. You're now leaving. [15:11:04] Speaker 2 [EN] Thank you. [15:11:06] Speaker 1 [EN] You're now leaving at the beginning of a year with a lot of national elections, especially in your home country. Did you consider whether this particular timing could undermine the independence of the ECB? [15:11:21] Speaker 2 [EN] Thank you very much for both questions. And I will entertain your second question with the other two. So I hope you don't mind, but I'm going to give you a documented and well-articulated response because this is a matter which I had assumed you might raise. The first response that I would give you is that this long-term and we look at the tenure, but we look at the entire curve. But say the long end of the curve across the world, not specifically for a member state, not specifically for the whole of Europe, but across the world, as reason significantly. If you compare numbers, say you take February and now you have a significant number of basis points that have increased these these. Corporate bonds and and this is caused by multiple factors. This is called caused by expected inflation. This is caused by expected interest rate path. And we. Think, although there is a very interesting blog that I highly recommend, we think that the debt issuance by some of the hyperscalers without really crowding out yet but increasing the volume of long-term bonds that are issued also plays a role. But that has affected the entire the entire market. Second observation, and that applies also to all countries. Those countries with the high debt, with high debt, have to factor into their fiscal policy plans the fact that interest rates are higher and will probably remain higher. [15:13:06] Speaker 1 [EN] For a period of time. [15:13:09] Speaker 2 [EN] In Europe, if you apply that principle, what it means is that policy measures have to be adopted as part of a plan that is always submitted to Brussels. And that has to comply with the European fiscal framework. So we will be looking at all that, obviously, and some. Member states face particular challenges I would say that it narrows down and it boils down to those countries that have a high level of debt in general. But I would also add that should market developments threaten the smooth transmission of our monetary policy, including through unwarranted and disorderly market movements, we have instruments available to respond. And the criterias and conditions under which this applies, are well known. They are published. And I'm sure you know them. Thank you. [15:14:16] Speaker 3 [EN] Stefan Rakius of Handelsblatt next, please. Stefan. [15:14:21] Speaker 1 [EN] Thank you for the floor. Good afternoon. My first question is on monetary policy you mentioned that you are still in the phase of measured tightening. That said, why would there be any doubt that the ECB will stick to the quarterly pace and hike again in December? And my second question, also on a personal note, will you let us know what you are going to do explicitly after the 7th of February? Thanks. [15:14:51] Speaker 2 [EN] Thank you very much. So to your first question, yes, at this point in time, we are still on this measured response to the current situation. And as I said earlier on, we will assess the development of geopolitical. Situation, the development of energy prices, the development of tightening of the the cost of financing, and any other facts, figures, that are relevant to compare the situation as we have it now with what we receive next December. And as I said, unless there were major development, the direction of travel is quite clear. For all of us. Is there a case for reducing our activity to the quarterly meetings? [15:15:52] Speaker 1 [EN] No. [15:15:54] Speaker 2 [EN] No. We have never restricted ourselves to that. It is it is true that we are more data-rich at. Those projection meetings, but we are also capable of understanding what staff is explaining to us, the information they're collecting, the analysis that they they do. And if it was so warranted, in order to reach our target of 2% medium term, not restricted to quarterly meetings. And we have no plan to restrict the number of meetings that we'll deal with monetary policy. [15:16:34] Speaker 3 [EN] Next question. Olaf Störbeck of Financial Times. Olaf, please. [15:16:41] Speaker 1 [EN] Yeah. Thanks for taking my questions. I have also one on on your or kind of on on implications of your decision today. So you are the eighth of 26 executive board members in the history of the ECB who is resigning or who is leaving early, which is quite a high share. Does this point to some flaws in the ECB's governance, or is it is the. [15:17:06] Speaker 2 [EN] Sorry. Can you repeat your question? You. [15:17:08] Speaker 1 [EN] Eight of the the total exec 26 executive board members, including you, will have left early before the kind of full serving the full term, which is quite a high rate that does this suggest there there are yeah flaws in the governance? Is are ideas too long? You said in this Bloomberg interview early at the start of the year, you initially thought it's a five-year term. So yeah, I would be interested in your thought on that. And also coming back to French bond yields, and to to what extent is the recent rise in government bond yields doing some of the ECB's work at the moment? And is the need for further interest rate increases reduced because of that? Thanks. [15:17:56] Speaker 2 [EN] Well, thank you on your first question. I will only address the the issue of governance. I think the governance of the ECB has proven its solidity. We have had transition in the past. Business continuity has always been the mantra for this institution. It has never failed. And I have every confidence that it will continue to apply the principles of continuity of mission-focused, determined action to reach the target of our 2% medium term. And you can rest assured that until February the 7th, I'm in charge I'm focused, and I will be working without any reservation, without any excuses. On your other question, I think I've I've addressed that, and it's really one of the one. Of the phenomenons that we have observed, which have changed the picture since September. Because yes, you're right, long-term Yields has. Increased, across the board, so more so in some countries, less so in others. And then you begin looking at the spreads. And we look at everything. But that has been a qualifying element, if you will, to the increase in energy prices. So energy prices have increased inflation, long-term financing costs have qualified the magnitude of that increase, and it's in those circumstances which we will be very attentive to in the weeks to come. And with another special focus on underlying inflation, that we will make our decision in December. [15:19:47] Speaker 3 [EN] Next question, Andres Stumpf of Expansion in Spain. Andres, please. [15:19:52] Speaker 1 [EN] Hello. Madame President, I I would like to know if this no hiking thing, because of tighter financial conditions in the markets, is a one thing only, this for this meeting, or if it will happen to continue throughout November. The ECB could not hike or or keep the interest rate unchanged again because of that. And a second question for the pile of later. The mandates in the European Council and the European Parliament are going to be discussed in before you leave. Would you be interested at all or not applying to those positions? Thank you. Just to keep you near. [15:20:42] Speaker 2 [EN] That's really kind of you, but I I'll try to address your second question as well with the other questions. So I think you're right to actually characterize our decision. I hadn't thought about it, but you're right in characterizing it as a no hiking decision. Because we we did ask ourselves the question, and there was a number of us, you know, assessing and and pondering whether it was warranted as of now already, or whether we needed to confront the current assessment with future data numbers elements that we would assess against our three-prong monetary policy reaction function. So it's as as I have said, and you're probably getting tired of me saying it, but we decide meeting by meeting. So it it does not indicate that we will not be hiking in November. And our next meeting is in December. As I've said earlier, I think in response to a previous question, if. The assessment that we have today is not infirmed by significant developments, the direction of travel is clear. [15:22:04] Speaker 3 [EN] Next question, Jean-Philippe Lacour of Agence France-Presse. Jean-Philippe, please. [15:22:08] Speaker 1 [EN] Before I can. [15:22:09] Speaker 1 [FR] Hello, Madam President. [15:22:11] Speaker 2 [FR] Hello, Mr President. [15:22:12] Speaker 1 [EN] I have a question linked to France, and it's only for the second and last part of the answering of the bunch of questions we had today. What does really concern you the most in France and your home country? I certainly not only the high yields for the moment. So could you maybe describe what are the main concerns? And and how do you want to, as you you don't want to stay neutral toward this this situation, and what will be yes the the the nature of your intervention? Do you intend to support actively maybe one candidate or, if so, which one? And the last maybe very leger questions, but when did you inform your grandchildren about your decision? [15:23:02] Speaker 1 [FR] I remember that. [15:23:05] Speaker 2 [FR] Them too. Them too. [15:23:08] Speaker 1 [EN] Okay. [15:23:08] Speaker 2 [EN] Are there other questions on monetary policy? [15:23:11] Speaker 3 [EN] Yes. Then please Viggo Risvik of the Dutch Daily Telegraaf, please. [15:23:21] Speaker 1 [EN] Thank you. I was wondering, also, about France a bit. So it's a bit on defense of monetary policy, but given. The current situation in France, besides the spreads rising, not all that much has changed in the last six months. High debt has been known for quite some time. Yet now there are some talks about the possibility of another euro crisis. I was wondering what your thoughts are on that. And I do have a second question also about your departure. Now in the next six in the first six months of 2027, three experienced board members will leave the ECB. I was wondering how you will think about the continuity of the ECB in that regard. [15:24:20] Speaker 2 [EN] Thank you thank you very much. On on your question regarding the. I think I will I will take Monsieur Lacour's question regarding what concerns me later on, because it applies not to one country, it applies to all countries. So have there been changes in the last six months where they clearly have been changes? They're the ones that apply to all countries? The ones related to energy prices in general? The ones related to financing and particularly the financing costs at the long at the long end of the curve? And obviously we are mindful of all such developments. Do I fear that there will be developments coming up? There will be developments, obviously. But this is not going to deter us, European Central Bank, from delivering on our mission of price stability. And we will continue to do that on the basis of all the information that we receive. Thank you. [15:25:27] Speaker 3 [EN] Turning to turning to our online participants, I'd like to give the floor to Silvia Berzoni of Cora Media. Silvia, over to you, please. [15:25:40] Silvia Berzoni of [EN] Good afternoon, President. [15:25:42] Speaker 2 [EN] Good afternoon. [15:25:43] Silvia Berzoni of [EN] I think we are all I think we are all sorry for your departure. So two questions, if I may. The first one is what worries you the most today? If it's inflation or financial fragmentation. And in September, French sovereign bond holdings declined significantly less than Italians and Germans under the quantitative tightening program. So as the pattern continued in October, and is this purely a mechanical rolloff? Thank you very much. [15:26:15] Speaker 2 [EN] Well, thank you so much. And thank you I will miss you, actually. So what worries me most is anything that affects price stability. Because we are fixated on on our mandate, and price stability is, you know, our our compass. So obviously inflation matters a lot, but price stability does not take place without financial stability. So we have to look out for any threats to financial stability and any threat to price stability. So I would say that I would package this too, because what's driving us is the the price stability mandate that we have. I think you had another question now that I think of it. It was after you told me that you would miss me. What was the second? [15:27:06] Speaker 3 [EN] It's the French bond holdings declining and whether it's purely a mechanical rolloff. That's the one that I've noted. [15:27:14] Speaker 2 [EN] I'm sorry. I missed the second part. [15:27:17] Speaker 3 [EN] You want to repeat it, perhaps? [15:27:19] In September (French sovereign bond holdings) [EN] Yeah. Yeah. It does exactly. In September, French sovereign bond holdings. [15:27:26] Speaker 2 [EN] Oh, yeah, yeah, yeah. [15:27:26] Speaker 4 [EN] Declined. Yeah. Yeah, yeah. So if this is just a mechanical. [15:27:30] Speaker 2 [EN] Okay. My understanding of of that, but I'm not the, you know, the top-notch expert for all redemption. Of all bonds coming up for all countries across the member states. What I can tell you is that we are not changing our policy as far as letting. Redemption take place without purchasing. And without replacing those bonds that that come for redemption, I also know for a fact that that's from previous life, that November is is a pretty heavy month when it comes to France in particular. But it's all mechanical. There is no behind-the-scene, you know, arrangement to tweak here, tweak there, rebalance, and and cut corners. We we just apply the principle of no redemption. [15:28:16] Speaker 3 [EN] Would you like to address the other question? [15:28:17] Speaker 2 [EN] Okay. So allow me not to necessarily dig into each and every specific aspect of your of your question in relation to my decision to step down. So my decision is to step down from my position as President of the European Central Bank after the February monetary policy governing council. So you will have the great pleasure, and I will have the great pleasure of seeing those of you who care to come twice: once in December, once in February. So we are not done. We will continue to see each other. And I'm delighted about that. There is never a good time to. Leave. But it's embedded in the governance of the ECB that presidents, board members, have to leave because they cannot be up for renewal. So the end of my term in any event would have been October 2027. The reason I'm anticipating the end of my term by living in February of 2027 instead of October is, as I have said to colleagues, members of staff, and governors, because I want to have the freedom of speech, the freedom of expression, and the freedom to engage on matters that are not monetary policy matters. As you all know, as President of the European Central Bank and my colleagues on the executive boards and on the governing council are under pretty much the same constraints, we have an obligation of neutrality. We comment on the situation with the focus on monetary policy. We are driven by one mandate, and we don't get out of that mandate because that's the price we pay for being independent. At this time, in relation to many corners of the world, not just European corners, not just Europe, I think that my voice can help, my action can help in relation to principles that are dear to my heart. One of those principles because I think Jean-Philippe Lacour, you asked me. I don't think that I can remain neutral. I don't think that I can be comfortable in that neutrality at the present time. And I'm interested in the truth. And I see the truth being very often damaged. Contradicted. By Misrepresentation, and from the position that I have had for the last 20-plus years of my [15:31:08] Speaker 2 [EN] life, in economic and financial matters, on the international scene as managing director of the IMF, as president of the ECB, there are things that I can say with the people will listen or not is another story. But I feel that I should say those things. And I cannot do so in my current position. Voilà. [15:31:32] Speaker 3 [EN] Thank you. That concludes our press conference. And. [15:31:37] Speaker 2 [EN] And no, one more thing that I would like to say, because I don't want to, you know, I will be replaced. So rest assured that not only the ECB is going to carry on with perfect continuity of business. A process has already started. To identify my successor. There are plenty of excellent candidates, much better than me, actually. So don't worry about continuity of business. Don't worry about, you know, decision-making in limbo. No. Absolutely not. The institution is solid, strong. Like a rock. And it will continue being so. Thank you. [15:32:17] Speaker 3 [EN] We'll see each other again if you want on 17 December here for the next press conference. Thank you very much.