point in the outlook for economic activity but are also contributing to further upward price pressures that are much stronger and more persistent than we previously anticipated. this implies that inflation is likely to stay above our 2 % target for an extended period. as a result, we accelerated the pace of monetary policy normalisation over the summer to ensure that monetary policy is consistent with inflation returning to our target in the medium term. we have communicated that we will take a meeting - by - meeting approach in assessing the appropriate next steps in monetary policy normalisation. as reiterated by president lagarde at the european parliament earlier this week, the direction of travel is clear, and we will raise rates further in the pursuit of our objective. this will avoid that our 1 / 3 bis - central bankers'speeches monetary policy puts upward pressure on prices by sustaining demand when supply is constrained. it will also guard against the risk of a persistent upward shift in inflation expectations. at the same time, with many of the sources of today's inflation originating from supply constraints, government policies that redirect public and private investment to supporting sustainable growth can help mitigate inflationary pressures in the medium to longer term. in any case, these investments are crucial to achieving the eu's aim of meeting the goals outlined in the paris agreement. as acknowledged in our monetary policy strategy, given the profound implications of climate change for price stability and its clear and unequivocal status as a policy priority for the eu, the ecb is committed to ensuring that we take climate change fully into account in the pursuit of our mandate. this is indeed a strategic commitment – it applies to every phase of the business cycle, irrespective of the type of shocks that hit the euro area. the same is true for our commitment to our price stability target. it therefore follows that our actions in pursuit of price stability do not undermine our commitment to incorporate climate change considerations, within our mandate. similarly, this same commitment does not undermine our commitment to price stability. nor does it in any way restrict our ability to deliver price stability, even in the challenging circumstances we are currently facing. not only have we started policy rate normalisation with an unprecedented 125 basis point increase in our rates over the last two governing council meetings, we have also released details of how we aim to decarbonise our corporate bond holdings on a path aligned with the goals of the paris agreement. as of next monday, we will start tilting our corporate bond purchases towards issuers with a

from climate change and environmental degradation. and we will not ignore all this. to the contrary. we acknowledge that we cannot deliver on our mandate if we assume a status quo in which the world will not transition as the baseline scenario for the future. and by rejecting that status quo as the baseline, we are becoming a force that contributes to the transition. and we will continue to be just that : a force that contributes to the transition. within our mandate. and in the pursuit of our mandate. thank you very much for your attention. 3 / 3 bis - central bankers'speeches