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 incoming data tell us about the euro area economy and outline our latest monetary policy decisions. I will then explain in more detail how our monetary policy strategy is guiding us in responding to shocks…