##bly reduced the sensitivity of debt to changes in market interest rates. the average interest rate will remain low for some time even if the marginal interest rate starts rising ( slide 13, left - hand chart ). second, with average interest rates remaining low, and inflation receding only gradually, the strong expected recovery over the coming years should lead to a gradual decline in debt - to - gdp ratios ( slide 13, right - hand chart ). structural reforms and large - scale investments related to next generation eu should foster confidence in the capacity of euro area countries to generate sustained high growth. third, our decision in december last year to reinvest flexibly under the pepp provides a strong mechanism to preserve the transmission of monetary policy in the event of severe and selffulfilling market dislocations that would jeopardise the achievement of our mandate. net purchases under the pepp could also be resumed, if necessary, to counter renewed negative shocks related to the pandemic. hence, we stand ready to counter severe market dislocations that lead to fragmentation, while our monetary policy stance is guided by our primary objective of maintaining price stability. conclusion let me conclude. the inflation outlook has firmed since the start of the year. inflationary pressures have broadened and have become more persistent. the expected easing of contact restrictions, together with the strong recovery in the labour market and elevated pipeline pressures have increased upside risks to inflation over the medium term. at the same time, the shock of war hanging over europe has clouded the global outlook. in this environment, we need to carefully reflect on how much monetary policy stimulus is required for inflation to stabilise at our target over the medium term, so as to neither fall below 2 % once the extraordinary factors related to the pandemic fade, nor to allow an extended period of high inflation to become entrenched over time. this uncertainty speaks in favour of a gradual and data - dependent normalisation that respects the sequence that we have communicated, with a view to reducing uncertainty about our actions and intentions. thank you. 1 broader labour market slack includes anyone marginally attached to the labour force as well as employees that 7 / 8 bis central bankers'speeches work part - time for economic reasons. 2 see schnabel, i. ( 2022 ), “ looking through higher energy prices? monetary policy and the green transition ”, remarks at a panel on “ climate and the financial system ” at the american finance association 2022

strategies, since it provides the first line of defense against any allegation of malpractice of corporate duty. employing sound corporate governance practices, lowers the risk of non - compliance with statutory and regulatory obligations, that ultimately leads to financially sound institutions. tip! : better governance most of the time equates less intrusive supervision. finally, i want to congratulate you with the launching of the governance network of the dutch caribbean, with whom the cbcs will most certainly work closely together in the future. i thank you for your attention, and i wish you a pleasant evening.