emphasise that both fiscal and monetary policies play a countercyclical role, that is, they address the issue of overcoming the downturn and bringing the economy back to its potential. this is certainly a top - priority task in the current situation, yet it is critical to remember what is absolutely essential for sustainable long - term development and an increase in economic potential, labour productivity and, accordingly, households ’ incomes. to tackle this task, we need incentives to increase private investments and develop private initiatives and should enhance the flexibility of the labour market, which primarily depends on the business climate and other structural factors. the level of our economic potential after the pandemic and how quickly the economy will regain it are crucial for both our macroeconomic forecast and monetary policy. as you know, this uncertainty of supply - and demand - side factors is a key point in our forecast scenarios. they are presented in the draft monetary policy guidelines for 2021 – 2023 published last week. we are going to update our forecast estimates following the board of directors ’ meeting scheduled for october. yet, our approaches to the set of scenarios and key forecast assumptions in the scenarios will remain unchanged. winding up, i would like to make my traditional comments on monetary policy prospects. the main path of the monetary policy easing has already been passed — since june 2019, the key rate has decreased by 350 basis points, including by 200 basis points this year, to reach its record low. we still see some room for reducing the key rate, but we will consider the necessity to use this room and the time when this should be done. as shown in the monetary policy guidelines, both under the baseline and alternative scenarios, the bank of russia will be capable to tackle the task of maintaining price stability, that is, keeping inflation at our target close to 4 %. 3 / 3 bis central bankers'speeches

for https : / / www. bundesbank. de / en / press / speeches / the - potential - long - term - effects - of - the - coronavirus - crisis - on - the - economy - and - on - monetary - policy - 85 … 10 / 14 12 / 21 / 2020 the potential long - term effects of the coronavirus crisis on the economy and on monetary policy | deutsche bundesbank carbon emissions is crucial. monetary policy is not a suitable substitute for an ambitious carbon price and a consistent, credible climate policy. the imperative for monetary policy is to safeguard price stability. during an economic crisis such as the one we are currently experiencing, this means supporting the economy as a whole through favourable ﬁnancing conditions. our purchase programmes for private securities are broadly geared to the market accordingly. studies show that these programmes serve their purpose and reduce ﬁnancing costs for the economy as a whole. they thus affect not only the prices and yields of the bonds purchased, but also those of non - eligible securities, [ 25 ] because our purchases cause investors to turn to other, more risky investments. therefore, when purchase programmes are speciﬁcally used to manage certain market yields, the effect of this should not be overstated. and here, too, we should not turn a blind eye to potential conﬂicts of interest. the eurosystem will have to reduce its asset purchases or holdings if this is necessary for price stability. however, progress must then also continue to be made in the transition to a climate - neutral economy. in my view, there is no question that climate protection poses one of the greatest challenges of our time, and that action cannot be delayed. all of us can and should do more, including central banks. above all, we need to better understand the implications climate change may have for monetary policy, because we have to be able to maintain price stability in the future, too. central banks are also required to take action if climate change or climate policy engenders ﬁnancial risk. in banking supervision and when monitoring ﬁnancial stability, we must ensure that credit institutions take [UNK] account of such risks in their risk management. however, climate - related ﬁnancial risks can also affect central banks ’ ﬁnancial assets, which is why we should also incorporate them into our risk management. this is particularly true with regard to the monetary policy portfolios. here, it is legitimate to provide climate - relevant information from securities issuers