Let me focus on the first, as this is in the hands of the central bank. For us in the ECB and the Eurosystem, when devising an exit strategy from the current extraordinary low level of interest rates and the liquidity support to the banking system, through standard and non-standard measures, it will be essential to strike a balance between, on the one hand, responding in a timely and effective manner to incipient risks to price stability as the economy recovers and market conditions normalise, and, on the other hand, winding down in a proportionate manner the support schemes and non-standard measures that have been implemented to mitigate the adverse effects of the crisis on the banking system and certain financial market segments. With regard to the latter, gradualism and clear communication by the central bank of any changes to the operational framework with sufficient lead time to allow market participants to prepare and adjust their liquidity management will be essential. The ECB and the Eurosystem are committed to pursuing such a gradualist approach as well as a timely and transparent communication policy. VI. Conclusion  I started my remarks by pointing to the relevance of Heraclitus’ insight for the last two years, namely that “all is in flux”. He developed further his theory of continuous change and reasoned that all that exists, in fact, “simultaneously forms and dissolves”. This line of philosphical reasoning led him to argue that “the way up and the way down are one and the same”.
ahap Kavcolu: Recent economic and financial developments in Turkey Speech by Mr ahap Kavcolu, Governor of the Central Bank of the Republic of Turkey, at the 91st Ordinary Meeting of the General Assembly, Ankara, 28 March 2023. *** Esteemed Shareholders, Distinguished Guests, Before I start my speech, I would like to wish Allah Almighty's mercy on our citizens who lost their lives in the devastating earthquakes in February, I extend my condolences to their grieving families, and I wish a speedy recovery to those who are still being treated. I would like to commemorate again Prof. Yusuf Tuna, our esteemed professor and member of the Monetary Policy Committee, who passed away last year. Before moving on to the agenda items to be discussed at the General Assembly, I would like to share with you our assessments regarding the macroeconomic outlook and our monetary policy implementations. In the last part of my speech, I will summarize our activities in 2022. Distinguished Participants, In 2022, while the negative effects of the pandemic had not yet been fully eliminated, as a result of the Russian-Ukrainian war that took place in Türkiye's immediate region, supply constraints appeared again and particularly energy prices and global commodity and food prices rose rapidly. In addition to the geopolitical uncertainties that emerged due to the war, the supply-demand imbalances that persisted in the aftermath of the pandemic caused inflation to increase rapidly on a global scale, reaching historically high levels.