further towards our target, since it will increasingly dampen demand. taking into account our updated assessment of the inflation outlook, the dynamics of underlying inflation, and the strength of monetary policy transmission, the governing council decided yesterday to raise interest rates again by 25 basis points. that means we have now raised rates by 400 basis points in less than a year. this is testament to our determination to ensure that inflation returns to our 2 % medium - term target in a timely manner. 1 / 2 bis - central bankers'speeches we also confirmed that our future decisions will ensure that the key ecb interest rates will be brought to levels sufficiently restrictive to achieve a timely return of inflation to our 2 % medium - term target and will be kept at those levels for as long as necessary. in other words, we still have ground to cover. barring a material change to our baseline, it is very likely that we will continue to increase rates at our next policy meeting in july. thereafter, we will continue to follow a data - dependent approach to determining the appropriate level and duration of restriction. in particular, our interest rate decisions will continue to 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. the governing council also confirmed that it will discontinue the reinvestments under the asset purchase programme as of july 2023. 2 / 2 bis - central bankers'speeches

requirement for a successful monetary integration process. inflation rates in many new member states have picked up recently to an average of almost 5 %, following increases in food and energy prices and indirect tax changes. the challenge for the new member states is to contain inflation and inflation expectations in an environment of rapid catching - up. besides solid macroeconomic policy frameworks and prudent wage policies, progress in structural reforms is conducive to price stability by improving the supply side of the economy and enhancing the growth potential. this brings me to the second challenge that i want to mention : the need to achieve sound fiscal positions. fiscal deficits are on average high or even very high in a number of new member states and mostly despite very high economic growth. their governments are confronted with competing expenditure demands, including public investment in infrastructure and the need to strengthen the effectiveness of public administration and the judicial systems. this, however, should not be seen as an excuse to delay fiscal consolidation, but as an additional reason to design and implement a credible consolidation path based on durable and growth - enhancing structural reforms. it is important to bear in mind that fiscal consolidation in the new member states becomes increasingly important in the course of the monetary integration process and it is essential for a smooth participation in erm ii and the eventual adoption of the euro. conclusion let me conclude. the historic enlargement of the eu is now six months ago and i think we can say that is has been a genuine success. following a remarkable transformation in the past 15 years, the further integration of the new member states into the european family has progressed smoothly and without any disruptions. the new member states have shown an impressive economic performance, though various important challenges still remain to be fully tackled, including those relating to the recent pick - up in inflation and to fiscal imbalances.