currently pursued by all major central banks. naturally, there is a huge amount of uncertainty over how the economic environment will evolve, but this is probably less true for inflation. nonetheless, it is important to share a few insights into its possible trajectory. in the short term, the public health crisis is disinflationary, as exemplified by the drop in oil prices. inflation is currently very low, at 0. 3 % in the euro area and 0. 4 % in france in april ; granted, it is particularly tricky to measure prices in the wake of the lockdown, due to the low volume of data reporting and transactions, and the shift in consumer habits, temporary or otherwise. in the short term, our estimates suggest that the dominant effect will be that of price moderation, caused by the slower pick - up in demand than in supply. the mediumterm consequences are more open to debate, due notably to uncertainties over production costs, linked for example to health and environmental standards and the potential onshoring of certain production lines ; the differences between sectors could be significant, leading to variations in 1 / 5 bis central bankers'speeches relative prices rather than a general upward path. according to the different forecasts, overall inflation should not move above 1 % at least until 2021, which is in line with market expectations. this sluggishness in prices comes after a decade of persistently below - target inflation, which has averaged 1. 3 %. beyond these figures, i would like to underline three qualifying criteria for our inflation target, which are all interlinked. our inflation target of close to 2 % is symmetrical, flexible and mediumterm. – symmetrical : if our central target is perceived as a ceiling, we are less likely to reach it. clearly, therefore, we will be prepared in the future to exceed 2 % on certain occasions. – flexible : we cannot guarantee 2. 0 % either all the time or straight away. – and, consequently, medium - term. this medium - term target needs to be viewed in two ways : it is forward - looking, to guide inflation expectations ; but it cannot completely ignore the past either. should we go as far as targeting an average level of inflation of close to 2 %, and therefore explicitly compensate for any undershooting or overshooting of the target over time? this question remains open, and will be part of the “ strategic review ” of monetary policy that the ecb will pick up again in

denis beau : the future of central bank money in the coming digital age of wholesale and retail payments keynote speech by mr denis beau, first deputy governor of the bank of france, at the singapore fintech festival, singapore, 6 november 2024. * * * ladies and gentlemen, i am delighted to be here with you at the singapore fintech festival today to open this second session on the future of money in a world of growing digitalisation in finance. i would like to take this opportunity to share our perspective at the banque de france on this topic. while wholesale and retail payment processes are being shaped by different drivers and trends, they raise a common challenge for us at the banque de france, given our monetary and financial stability mandate : namely to safeguard and promote their safety and efficiency in a digitalising financial system. to meet this objective, we at the banque de france are focusing our efforts on three key levers : first, adapting central bank money services ; second, supporting industry initiatives that align with our policy objectives ; and third, helping to shape an appropriate regulatory framework. today, i will primarily focus my remarks on our use of the first lever – the adaptation of central bank money services – and on the importance we grant to that end to cooperating and experimenting with other public and private stakeholders, exemplified by the partnership we have established with the monetary authority of singapore. 1. wholesale digital payments the safety of financial transactions depends to an important degree on the type of settlement asset chosen. this has led policymakers and market participants for decades now to favour central bank money as the preferred settlement asset in the wholesale space. this preference is well reflected in principle 9 of the cpmi - iosco's principles for financial market infrastructures ( pfmis ). our conviction at the banque de france is that, in an increasingly digitalised financial system, where tokenised assets and dlt - based infrastructures may gain an important role, central bank money should be maintained as the predominant settlement asset between financial intermediaries. private settlement assets, particularly stablecoins, are being used and, in the absence of central bank money on dlt - based infrastructures, could be widely used going forward to settle tokenised assets. but stablecoins do not have the safety, liquidity and stability of central bank money. in addition, the lack of coordination in the development of private settlement solutions, could lead to increased market fragmentation. 1 / 3 bis - central bankers'speeches this