ECB Officials Said To Claim Vindication On Rate Hike Amid Price Risks

Ladies and gentlemen, I am very pleased to be with you today and to speak in these beautiful and history-filled surroundings. We are living in turbulent times – once again. I guess almost everyone can name factors currently adding to overall uncertainty: the Russian war of aggression against Ukraine, the comeback of high inflation, high public debt levels and, most recently, financial market tensions as well. In such times, it is especially difficult to prioritise actions that need to be taken. In my speech today, I will focus on a number of issues that I deem important right now. I will shed some light on current economic developments. Then I will of course, comment on inflation and monetary policy. And I will focus especially on fiscal developments and the discussion surrounding fiscal rules which – as you may know, is a particular obsession of central bankers. One topic that is probably of particular interest to you is the most recent developments in financial markets. Whenever banks get in distress or fail, questions inevitably pop up: about proper risk management, about sufficient regulation, about contagion risks. And rightly so. It is our duty as central banks to probe the stability of tweet at 1:01pm: ECB'S NAGEL: BANK SECTOR IS RESILIENT, AND CONTAGION RISKS TO EUROZONE BANKS ARE LOW. tweet at 1:01pm: ECB'S NAGEL: FURTHER RATE HIKES NEEDED IN COMING MEETINGS IF INFLATION DEVELOPS AS PROJECTED ECB'S NAGEL: ECB'S JOB NOT YET DONE, BANK MUST BE BOLD AND DECISIVE || SAYS INFLATION PROJECTIONS CONTAIN UPSIDE RISKS; WAGES MAY RISE MORE STRONGLY THAN ASSUMED

tweet at 1:25pm: BoE: There Remain Channels Through Which UK Economic Conditions Could Be Affected by Stress in Global Banking System - Letter to Treasury Committee tweet at 1:27pm: BOE: FURTHER VOLATILITY AND SHARP PRICE MOVEMENTS IN ASSETS COULD LEAD TO THE CRYSTALLISATION OF PREVIOUSLY IDENTIFIED VULNERABILITIES IN MARKET-BASED FINANCE - LETTER TO TREASURY COMMITTEE.