3.2 Monetary policy stance compatible with financial stability It is up to monetary policy to ensure that the inflation rate returns to its target of 2% over the medium term. That is why interest rates need to be high enough to sufficiently slow economic growth and keep inflation expectations anchored. Monetary policy must do what is necessary to safeguard price stability.
Ultimately, price stability is also the best contribution that monetary policy can make to the prosperity of our society. Within less than one year, the ECB Governing Council has raised its key interest rates by four whole percentage points. This is a sign of our determination and vigour in the fight against inflation.