The smart coordination this time around reminds me of what Tommaso Padoa-Schioppa used to say about central banks, “Independence does not mean isolation.” It is a better policy mix that serves Europe now. Since early March, the ECB has used a number of instruments to ensure easy financial conditions, thus securing access to finance for households and businesses.
Consistent with our financial stability mandate, we recently published a climate change report outlining the actions we are taking to help climate-related risks be appropriately understood and managed. Our latest stress tests also considered the impacts of increased frequency of droughts and other weather events on banks and insurers, including impacts on profitability and capital.