Speech by Luis de Guindos, Vice-President of the ECB, at the 8th Annual Conference of Mediterranean Central Banks, organised by Hrvatska narodna banka, Banco de España, OECD, IEMed, and UfM

Split, 14 February 2024

Over the past few years the euro area economy has experienced unprecedented shocks that created exceptional uncertainty and drove inflation to record highs. In response to these inflationary pressures, we embarked on the most forceful rate hiking cycle in the history of the euro. Credibility – very much the focus of today’s conference – is a key central bank asset that becomes even more important in times of high uncertainty. Our policy measures are making a substantial contribution to reducing inflation, demonstrating our commitment to ensuring that inflation returns to our two per cent medium-term target in a timely manner.

In my remarks today, I will first review the state of the euro area economy and our latest monetary policy decisions. I will then turn to…