sustainable and equitable growth. this will help alleviate standard of living for the entire region. and i am convinced that today ’ s conference will play an important role in sharing developments in the frontier economies – the next wave of emerging economies which will contribute to the regional and global growth and prosperity. 17. last but not least, i would like to express my sincere gratitude to our cohosts, the international monetary fund ( imf ) and the japan international cooperation agency ( jica ), who make the conference possible. i wish you all a successful conference and look forward to your discussions. 18. thank you. bis central bankers ’ speeches

of inflation at 1. 7 percent should be viewed as both a success and a wake - up call. we cannot be complacent. a policy - rate path that remains too restrictive for too long could induce an undershooting of our inflation target over the medium term and impede growth. should that occur, we would risk damaging our credibility. after all, credibility can be damaged by both overshooting and undershooting inflation objectives. in an environment of high uncertainty, a prolonged period of stagnation and weak investment could have lasting consequences for inflation. our task going forward is to chart a rate path that removes additional layers of restriction so that the recovery is enhanced. although i have focused on monetary policy, in my view, the contributions of fiscal and structural policies to macroeconomic stability are equally important. furthermore, 5 / 7 bis - central bankers'speeches completing the banking union and the capital markets union ( cmu ) is crucial to mobilising the investments needed to promote growth and employment. a single market for capital will enhance the european union's ( eu's ) productivity and competitiveness and increase the euro area's supply capacity and autonomy while supporting mediumterm price stability and economic welfare. finally, i would like to highlight the following factors, which, in my view, explain the success of the ecb's monetary policy so far in bringing inflation towards its 2 - percent target amid a series of shocks, which started with the pandemic and continued with the war in ukraine : first, the institutional independence of the ecb and the national central banks comprising the eurosystem. second, a commitment to the 2 - percent inflation target, using key interest rates as the primary policy tool, supplemented with non - standard measures when required by macroeconomic and monetary conditions. third, a pragmatic, flexible and gradual approach in an environment of heightened uncertainty. fourth, clear and effective communications from the ecb. in a world prone to supply disruptions and susceptible to geopolitical and political uncertainties, monetary policy needs to remain an anchor of stability and confidence. in my view, the ecb has performed efficiently - and credibly - in bringing down inflation in a timely manner while avoiding a recession. we will continue to be data - dependent, assessing all incoming information at each of our forthcoming monetary - policy meetings. we stand ready to proceed with further policy easing in a stepwise approach as warranted in order to safeguard a stable macroeconomic