As the hiking cycle is progressing further, the ECB Governing Council will need to find the right balance between two risks: the risk of stopping too early before the “job is done”, which could cause inflation to remain persistently elevated and entrenched in price and wage setting processes, and that of overtightening monetary conditions, which would result in significant repercussions for economic activity, financial stability and, ultimately, medium-term price developments.
But monetary accommodation is still needed – including net purchases under the APP and our forward guidance on interest rates – for inflation to stabilise at our two per cent inflation target over the medium term. We are now ready to take your questions. 4/4  BIS central bankers' speeches