asset purchases step by step over the coming quarters, and will end net purchases under the pandemic emergency purchase programme at the end of march. in view of the current uncertainty, we need more than ever to maintain flexibility and optionality in the conduct of monetary policy. our monetary policy is always data - dependent, and this is all the more important in the situation that we are facing at the moment. we will remain attentive to the incoming data and carefully assess the implications for the medium - term inflation outlook. those implications are key parameters in our forward guidance. our forward guidance has several dimensions. there is a defined sequencing between the end of our net asset purchases and the lift - off date. a rate hike will not occur before our net asset purchases finish. moreover, there are three conditions that will have to be met before the governing council feels sufficiently confident that a tilt in our policy rate is appropriate. all the three conditions are meant as safeguards against a premature increase in interest rates. finally, any adjustment to our policy will be gradual. conclusion let me conclude. former commission president jacques delors described the process leading up to the maastricht treaty as one requiring “ great determination, rockhard solidarity and a little daring from time to time ”. 2 the leaders of europe have once again demonstrated these qualities with their policy response to the pandemic crisis. and as we emerge from the pandemic, we need to continue down this path. the ecb will play its part and show the determination needed to ensure price stability. you may rest assured that our commitment to deliver on this remains absolutely unwavering, as does our resolution to explain, to convince, but also to listen and better understand people ’ s concerns. our regular exchanges with you, their elected representatives, are crucial in that regard. with this in mind, i very much look forward to today ’ s discussion with you. 1 see introductory statement by christine lagarde, president of the ecb, at the econ committee of the european parliament, 2 december 2019. 2 see presentation by president jacques delors at the european parliament, 12 february 1992. 3 / 3 bis central bankers'speeches

mario draghi : continuity, consistency and credibility introductory remarks by mr mario draghi, president of the european central bank, at the 21st frankfurt european banking congress “ the big shift ”, frankfurt am main, 18 november 2011. * * * ladies and gentlemen, it is a privilege and a pleasure for me to be here today. as you know, this is the first time i ’ m speaking publicly as president of the european central bank outside the ecb. i could not think of a more appropriate occasion than the european banking congress in the ecb ’ s home town. i understand that this congress was established about 20 years ago to strengthen the position of frankfurt as a european financial centre, and thereby make the city attractive as a location – first for the european monetary institute and now for the ecb. well, i am pleased to see how successful it has been! before discussing the shift towards a much greater role of emerging economies, which is the theme of today ’ s congress, let me elaborate on the current situation in the euro area. i. the euro area situation and ecb monetary policy activity is expected to weaken in most of the advanced economies. this is the result of a weakening of various components of aggregate demand, both domestic and foreign. and it is evident in “ hard ” data as well as survey data. in the euro area, downside risks to the economic outlook have increased, and the weaker degree of activity will moderate price, cost and wage pressures. this is why the ecb decided to reduce its key interest rates by 25 basis points on 3 november, acting in full compliance with its mandate to maintain price stability in the medium term. we are aware of the current difficulties for banks due to the stress on sovereign bonds, the tightness of funding markets and the scarcity of eligible collateral. we are also aware of the problems of maturity mismatches on balance sheets, the challenges to raise levels of capital and the cyclical risks related to the downturn. in the money market, we see rising spreads between secured and unsecured segments, and a widening of repo prices between different types of collateral. interbank activity remains subdued and concentrated in the very short - term maturities. this limited activity is reflected in increased recourse to our liquidity - providing operations, as well as to our deposit facility. so far, the ecb has taken several non - standard measures to ensure that short - term funding does not represent a problem for euro area banks.