kganyago : cross - border payments shall be quicker, cheaper, more transparent and more accessible to all. yet this momentum could fade rapidly due to the lack of political impetus. the latest g20 offers a renewed opportunity to regain impetus on this topic, through the identification of concrete priorities – such as payment systems interoperability – and projects – such as the bis innovation hub nexus platform, connecting domestic instant ( or “ fast ” ) payment systems around the world. to prevent further financial fragmentation, let us start by reducing payments fragmentation for our fellow citizens * * * in these times of navigation and travel in stormy international and financial conditions, let me conclude with this famous quote from jack kerouac ’ s even more famous novel, on the road : “ our battered suitcases were piled on the sidewalk again ; we had longer ways to go. but no matter, the road is life ”. it is in our very essence as public authorities to carry on, no matter what, for the sake of global public good. rest assured that we central banks will do our part. thank you for your attention. f. villeroy de galhau, how monetary policy will defeat inflation : channels and locks, speech, 17 february 2023. for an overview on minilateralism see for instance e. moret ( 2016 ), brief _ 17 _ minilateralism. pdf ( europa. eu ) iii see for instance p. lamy ( 2020 ) ( polylateralism as the way forward, a conversation with pascal lamy - groupe d'etudes geopolitiques ( geopolitique. eu ) ) and answering the crisis of multilateralism with polylateralism groupe d'etudes geopolitiques ( geopolitique. eu ) iv imf, geoeconomic fragmentation and the future of multilateralism, staff discussion notes, 15 january 2023. v f. villeroy de galhau, ethics of currency : a possible guide for central bankers?, speech, 14 september 2022. vi boileau, art of poetry, 1674. i ii

inflation, the ecb raised its policy rates at an unprecedented pace ( + 350 bp since july 2022 ) to reach a restrictive stance. page 3 sur 7 but from now on, we are entering a new, more open phase of monetary policy ; we are shifting from automatic pilot to navigation by instruments. what does that mean in practice? our decisions on interest rates will be taken meeting by meeting. this navigation by instruments will especially rely on three cockpit dials : • the outlook for headline inflation, based on our macroeconomic projections. • the dynamics of underlying inflation. in my view, a turnaround in the trajectory of underlying inflation – be it actual or expected with sufficient certainty –, should be a trigger for stabilising our rates. i page 4 sur 7 • the strength of the transmission of our policy measures, or in other words the extent to which the “ plumbing ” of monetary policy is effective, and fast : from what is still in the pipe, to the ultimate and concrete impact on economic activity and prices. it takes some time – usually about one or two years – for monetary decisions to take full effect. there has been some debate recently in the united states on whether this lag is shorter or longer under the current conditions : but let us acknowledge we don ’ t know enough on this issue, and need to dig further. let me accordingly sum up where we are in our ecb monetary policy : we may possibly still have a little way to go on rate hikes at our next meetings, though i think it premature to decide now what we will do in may, but we have already completed most of our rate - hiking journey and the strongest economic effect ahead of us will be the pass - through of what is already in the pipe. in other words, the deferred effect of our past rate hikes will be more significant than the one of our future decisions. and it will be key to then stay the course for as long as necessary. to put it differently, the sprint is over giving way to a more long distance run. and, for interest rates as with ballistics, “ longer ” is becoming more significant than “ higher. ” b. separation of price stability and financial stability the two recent crises that engulfed svb and credit suisse have shaken investor confidence and sparked increased volatility on financial markets – including speculative behaviour. however, we at the ecb are confident in the resilience of the european banking system, as signalled by the