the coronavirus crisis phase is over. we will reinvest the principal payments from maturing securities purchased under the pepp until at least the end of 2022. in any case, the future roll - off of the pepp portfolio will be managed to avoid interference with the appropriate monetary policy stance. net purchases under our asset purchase programme ( app ) will continue at a monthly pace of €20 billion, together with the purchases under the additional €120 billion temporary envelope until the end of the year. we continue to expect monthly net asset purchases under the app to run for as long as necessary to reinforce the accommodative impact of our policy rates, and to end shortly before we start raising the key ecb interest rates. we intend to continue reinvesting, in full, the principal payments from maturing securities purchased under the app for an extended period of time past the date when we start raising the key ecb interest rates, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation. we will also continue to provide ample liquidity through our refinancing operations. in particular, 1 / 3 bis central bankers'speeches the latest operation in the third series of targeted longer - term refinancing operations ( tltro iii ) has registered a very high take - up of funds, supporting bank lending to firms and households. the monetary policy measures that we have taken since early march are providing crucial support to underpin the recovery of the euro area economy and to safeguard medium - term price stability. in particular, they support liquidity and funding conditions in the economy, help to sustain the flow of credit to households and firms, and contribute to maintaining favourable financing conditions for all sectors and jurisdictions. at the same time, in the current environment of elevated uncertainty, the governing council will carefully assess incoming information, including developments in the exchange rate, with regard to its implications for the medium - term inflation outlook. it continues to stand ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner, in line with its commitment to symmetry. let me now explain our assessment in greater detail, starting with the economic analysis. euro area real gdp contracted by 11. 8 %, quarter on quarter, in the second quarter of 2020. incoming data and survey results indicate a continued recovery of the euro area economy and point to a strong rebound in gdp growth in the third quarter

area we have certainly not been loose or lax! i trust that the ecb did well and took the right decisions in the past. let me give you an example : you know that when we decided to increase rate in december 2005 ( editors note : after almost two and a half years at 2. 0 % ), we were advised by the imf not to increase rates ; we were advised by the oecd not to increase rates ; we were advised by a number of other eloquent voices not to increase rates. we did it nonetheless, because our monetary analysis in particular strongly suggested that we should. today nobody suggests that we were wrong in our analysis and in our decision, on the contrary. 3. inflation in the united states is now around 4 %. would you say that the risks to price stability are now greater in the euro area than in the us? i certainly will not judge the policies that are pursued by other central banks. we all have our own responsibilities in our economies and we have to face different challenges : the shocks are not of the same nature and the same amplitude ; the economies themselves exhibit different structural features, including as regards their degree of flexibility. those different challenges are explaining why interest rates are different from country to country. do you know that interest rates in britain as well as in australia, new zealand, sweden and norway for example are higher than in the euro area? i trust that all central banks are doing what is necessary to counter inflationary pressures and to be credible in the delivery of price stability over time. to deliver price stability in the medium term is necessary for five reasons : first, it is what the european democracies have asked us to do when they created the ecb ; second, it is what our fellow citizens are asking us to do in the present circumstances ; third, it is particularly necessary for the most vulnerable and the poorest segment of society ; fourth, it is a necessary precondition for sustainable growth and job creation and fifth it is particularly important to solidly anchor inflation expectations in a period of financial market tensions and volatility. 4. why did the recent statement by the governing council lay so much emphasis on the need to suppress second - round effects in order to quell inflationary expectations? indeed, our message is that we should avoid second - round effects. we cannot change today the prices of oil and commodities. but we must avoid that prices that depend on us – for instance prices of services or the wages and