to activate the flexibility in reinvestment of redemptions coming due in the pepp portfolio, as the first line of defence to counter the pandemic - related risks to the transmission mechanism being seen. fourth, at the latest meeting of the governing council held last thursday, we decided to raise all three ecb policy rates by 50 bp, taking the deposit facility rate to 0 %, thus moving out of negative territory for the first time since 2014. at the same time, we approved the new transmission protection instrument ( tpi ), designed to safeguard the transmission of monetary policy. that is, we felt that a larger increase than signalled at the previous meeting was required, for two reasons. first, the updated assessment of the risks to inflation, including the materialisation of certain upside risks in the short term. second, we took into account the reinforced support for the effective transmission of monetary policy provided by the new tpi. this 50 bp hike means an accelerated exit from negative interest rates, but does not imply a higher terminal rate in the hiking cycle. the pace at which we approach that level will be determined by the incoming data that we observe at our future meetings and how they affect our medium - term inflation target of 2 %. in other words, our interest rate decisions will be made on a meeting - by - meeting basis. likewise, the governing council intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the app for an extended period of time past this first interest rate hike and, in any case, for as long as necessary to maintain ample liquidity conditions and an appropriate monetary policy stance. as concerns the pepp, the governing council intends to reinvest the principal payments from maturing securities purchased under the programme until at least the end of 2024. in any case, the future rolloff of the pepp portfolio will be managed to avoid interference with the appropriate monetary policy stance. as was to be expected, the monetary policy normalisation that began in december has translated into higher short and long - term interest rates in the euro area. specifically, the 10 - year ois rate, which proxies the euro area risk - free interest rate, has risen by 143 bp since the beginning of the year, while the 12 - month euribor has increased by 170 bp. over the same period, the risk premium on spanish 10 - year government bonds has increased by 44 bp. the new transmission protection instrument ( tpi

of the research department document that i shall send you this week. but let me conclude by highlighting the importance of the work entrusted to this committee, especially at this current juncture where, for other reasons, economic agents are under a cloud of uncertainty. the agreement reached in toledo whereby pension sustainability may not be used as a political battering ram is an achievement of which you should all be proud. this agreement, moreover, does not mean you should not react to the problems that may emerge in the pension system as a result of future demographic changes. on the contrary, the agreement obliges us all to examine the problems and seek solutions. i am sure you will be able to convey to the general public that these problems can be resolved if the appropriate measures are taken and that, moreover, if they are taken without delay, they need not be traumatic. and i am convinced that moderate reforms adopted in sufficient time will not only help resolve long - term problems but, by offering reassurance and reducing uncertainty over the future, they will also have favourable effects in the short run in the difficult economic circumstances currently besetting us.