Like on the painting, we will rise up, fiercely spread our wings, and protect our eggs from the menacing mongrel of inflation. Hence the ECB’s recent move – to raise interest rates by 75 basis points. As my central bank colleagues gathered here tonight will confirm, this major transition in monetary policy was a necessity.
At current inflation levels – levels that are threatening our European prosperity – we need to rapidly transition away from a highly accommodative monetary policy to interest rate levels that will support a timely return to our inflation target of two percent over the medium term.