It is a pleasure to return to this Committee for our regular dialogue. When we last met in February, inflation had remained close to the ECB’s 2% target for over a year, and euro area economic activity was showing solid growth momentum. Only a few days later, war broke out in the Middle East, reminding us how quickly external shocks can reshape the economic outlook. The topic you have chosen for today’s exchange – how monetary policy should be conducted in an environment of heightened geopolitical tensions and frequent supply shocks – is therefore particularly timely. In my remarks, I will first review what the ... (full story)