In our policy analysis, we need to be mindful of the pervasive uncertainty surrounding the global economy. Supply shocks that are raising inflation and slowing growth do call for a well calibrated policy normalisation. Monetary policy cannot do much about rising energy prices, but it can influence inflation expectations to stay anchored around the target.
That is, we –the central banks – have the means to maintain price stability, and as shown earlier this week by the Fed, we clearly have the will to do so. Before concluding, let me briefly comment on the risk of financial fragmentation in the eurozone. Flexibility in the conduct of asset purchases has helped us counter any impaired transmission of monetary policy.