relevance. yes, low interest rates are holding back banks ’ profitability, but our monetary policy is stimulating the volume and strengthening the quality of bank lending so well that its overall impact on banks is, for the time being, positive. if growth is to rise significantly and interest rates return progressively to levels more favourable to savings, economic policies must make a more active contribution. what does that mean in practice? budgetary margins for manoeuvre can be used, where they exist. but in most countries of the euro area they are limited or non - existent. in france, for example, where public debt is verging on 100 % of gdp, another delay in reducing deficits would mean taking an unconsidered risk with business and household confidence. in all of our countries, however, the mix of revenues and expenditure could be made friendlier to investment. and a comparison of current growth rates in the euro area shows a clear advantage for countries that have implemented the most ambitious structural reforms, most notably in their labour markets. 1 / 2 bis central bankers'speeches weak growth, high unemployment and low rates are not inevitable. they reflect the legacy of the crisis but are also a consequence of economic policies that are lacking in ambition. the ecb will continue to protect the euro area from financial shocks, but the monetary climate will not always be so favourable. and the global economy could present new risks. it ’ s time to draw – and act on – the appropriate conclusions. 2 / 2 bis central bankers'speeches

tiff macklem : release of the monetary policy report opening statement by mr tiff macklem, governor of the bank of canada, at the press conference following the release of the monetary policy report, ottawa, ontario, 25 october 2023. * * * good morning. i'm pleased to be here with senior deputy governor carolyn rogers to discuss today's policy announcement and the bank of canada's monetary policy report ( mpr ). today, we maintained our policy interest rate at 5 %. we are also continuing our policy of quantitative tightening. inflation has come down a lot since the summer of 2022, but as every canadian knows, inflation is still too high. we held our policy rate steady today because monetary policy is working to cool the economy and relieve price pressures, and we want to give it time to do its job. but further easing in inflation is likely to be slow, and inflationary risks have increased. let me expand on these themes and talk about the implications for monetary policy. global economic growth is slowing as expected as higher interest rates and tighter financial conditions restrain demand. but the composition is a bit different than we forecast in july. the us economy has been surprisingly strong, while china has slowed more than expected. at the same time, geopolitical tensions have increased. the russian war of aggression against ukraine continues, and hamas attacks in israel have ignited conflict in israel and gaza. these wars are causing incalculable suffering. they are also hurting the global economy and adding uncertainty to the outlook. in canada, the economy has slowed, and the data suggest demand and supply are now approaching balance. with the economy expected to move into excess supply this year and with growth anticipated to be weak for the next few quarters, price pressures should ease further. we expect inflation to ease gradually and return to the 2 % target in 2025. but we're worried that higher energy prices and persistence in underlying inflation are slowing progress. since our july mpr, we've seen clearer evidence that higher interest rates are moderating spending and rebalancing demand and supply. economic growth has slowed over the past year, averaging about 1 %. household credit growth has softened, and so has demand for housing and many durable goods. more recently, we are seeing the services sector slow as well. with consumer spending expected to remain subdued through most of 2024, we've revised down our growth outlook. growth in gross domestic product is forecast to remain below 1 %