In general, recent financial markets developments are indicative of evolving uncertainties for EMEs with significant challenges for the conduct of monetary policy and for ensuring financial stability in their economies. As central bankers, we will have to enhance our vigilance. IV.
Finally, let me also say a few words about recent exchange rate developments. From a monetary policy point of view, they are clearly a cause for concern as they add to upward pressure on consumer prices in the euro area. Furthermore, they do not appear to be appropriate when looking at fundamentals. As you are aware, we already expressed this concern for some time.