This is not an unwanted side effect, but an important link in the causal chain of our monetary policy tightening. We have to tame inflation, and to do so, we have to be bold and decisive. In my view, our job is not done yet. If inflation develops as projected, further interest rate hikes have to follow in upcoming meetings.
In the event that financial market tensions continue or spread to the euro area, we are prepared to respond to preserve financial stability in the euro area. The monetary policy of the Eurosystem will do what is necessary to ensure a timely return to price stability. But it is not monetary policy alone that influences the inflation outcome.