www.ecb.europa.eu
Keynote speech by Luis de Guindos, Vice-President of the ECB, at King’s College London
London, 7 July 2023
Introduction
Thank you very much for inviting me here today to give the keynote speech on inflation.[1] Over the past two years inflation has surged across the globe, with the euro area being no exception. To be able to deliver on their mandates, monetary policymakers must understand its root causes, dynamics as well as possible knock-on effects.
My comments today will focus on the current inflationary environment in the euro area and the ECB’s monetary policy response. I will start by giving you a brief overview of how we got to where we are today and how we see the outlook for growth and inflation developing over the coming years. I will then take a more in-depth look at the main drivers of inflation, focusing on how they have evolved over the course of the pandemic and more recently. Finally, I will turn to the ECB’s monetary policy response so far.