, only marginally up from the previous month. the annual growth in broad money – as measured by m3 – rose to 1. 6 per cent in may, from 1. 3 per cent in april. conclusion the governing council today decided to keep the three key ecb interest rates unchanged. we are determined to ensure that inflation returns to our two per cent medium - term target in a timely manner. we will keep policy rates sufficiently restrictive for as long as necessary to achieve this aim. we will continue to follow a datadependent and meeting - by - meeting approach to determining the appropriate level and duration of restriction. in particular, our interest rate decisions will be based on our assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission. we are not pre - committing to a particular rate path. in any case, we stand ready to adjust all of our instruments within our mandate to ensure that inflation returns to our medium - term target and to preserve the smooth functioning of monetary policy transmission. we are now ready to take your questions. 3 / 3 bis - central bankers'speeches

##uate around current levels for the rest of the year, partly owing to energy - related base effects. it is then expected to decline towards our target over the second half of next year, owing to weaker growth in labour costs, the effects of our restrictive monetary policy and the fading impact of the past inflation surge. measures of longer - term inflation expectations have remained broadly stable, with most standing at around 2 per cent. risk assessment the risks to economic growth are tilted to the downside. a weaker world economy or an escalation in trade tensions between major economies would weigh on euro area growth. russia's unjustified war against ukraine and the tragic conflict in the middle east are major sources of geopolitical risk. this may result in firms and households becoming less confident about the future and global trade being disrupted. growth 2 / 3 bis - central bankers'speeches could also be lower if the effects of monetary policy turn out stronger than expected. growth could be higher if inflation comes down more quickly than expected and rising confidence and real incomes mean that spending increases by more than anticipated, or if the world economy grows more strongly than expected. inflation could turn out higher than anticipated if wages or profits increase by more than expected. upside risks to inflation also stem from the heightened geopolitical tensions, which could push energy prices and freight costs higher in the near term and disrupt global trade. moreover, extreme weather events, and the unfolding climate crisis more broadly, could drive up food prices. by contrast, inflation may surprise on the downside if monetary policy dampens demand more than expected, or if the economic environment in the rest of the world worsens unexpectedly. financial and monetary conditions the policy rate cut in june has been transmitted smoothly to money market interest rates, while broader financial conditions have been somewhat volatile. financing costs remain restrictive as our previous policy rate increases continue to work their way through the transmission chain. the average interest rate on new loans to firms edged down to 5. 1 per cent in may, while mortgage rates remained unchanged at 3. 8 per cent. credit standards for loans remain tight. according to our latest bank lending survey, standards for lending to firms tightened slightly in the second quarter, while standards for mortgages eased moderately. firms'demand for loans fell slightly, while households'demand for mortgages rose for the first time since early 2022. overall, credit dynamics remain weak. bank lending to firms and households grew at an annual rate of 0. 3 per cent in may