Some authors have argued that the procyclicality concerns are largely exaggerated because there are reasons to believe that a number of other factors can alleviate or even offset these effects. (See Borio 2002). I think we don't know the definite answer yet. Theoretical arguments and the preliminary evidence combined should alert us that we have to make further progress on this issue.
We will ensure smooth liquidity conditions and implement the sanctions decided by the EU and European governments. We will take whatever action is needed to fulfil our mandate to pursue price stability and to safeguard financial stability. At our meeting on 10 March we made a first assessment of the impact of the Russia-Ukraine war.