us : on both sides of the atlantic, inflation is too high. but it doesn't have the same nature : the energy component is higher in europe ; the demand one higher in the us, where the labour market is also tighter. hence we don't need to raise rates at the same pace, nor to the same level. that said, signs of peaking inflation – headline and core – in the us last thursday are good news for everyone, as the us has been ahead of the global inflation cycle, and the us monetary tightening has had strong spill overs on the rest of the world through the high level of the dollar. central banks are thus playing their part in the fight against inflation, but let us not forget structural economic measures. " beefing up " our productive capacity also has the potential to help reduce inflation in the longer term, in addition to increasing potential growth. this holds especially true when it comes to our ecological transformation, in order to decrease our dependency on fossil fuels. beyond the significant adaptations that are needed in our productive systems, this major transformation will require massive investments, both public and private. and this is where sustainable finance has a key global role to play. ii. sustainable finance in france, in europe and in japan 2 / 4 bis - central bankers'speeches a. sustainable finance, especially green finance, remains dynamic despite difficult conditions in bond markets while issuance of bonds have slightly decreased in 2022, due to an uncertain economic and financial environment, it is striking that most segments of sustainable finance have resisted well. in particular, green bonds have even continued to expand by 15 % in the first half of 2022, reaching eur 260 billion. ( iii ) among those, sovereigns represent almost half of total issuance volumes. the french state, which was the first sovereign issuer of green bonds in 2017, now has the greatest outstanding, amounting to eur 45 billion. and the european commission, with its ongoing ngeu programme, is gaining momentum and will become the biggest issuer within the next few years, as it is set to issue 30 % of this programme, or eur 250 billion, in green bonds. ( iv ) japan is also gaining momentum, notably through its green growth strategy laid out in december 2020 to facilitate private investment – through green finance among others. b. central banks'and supervisors'actions regarding climate change central banks and supervisors are delivering what they promised, in their catalytic role within the financial system. let me stress

negative shock on terms of trade. this geopolitical and economic environment weighs on the confidence of businesses and consumers. in particular, inflation has become the prime concern of our european citizens. the rise in consumer prices has amplified in recent months, reaching 10. 7 % in october – france displays the lowest rate in the euro area with 7. 1 %, thanks in particular to its " tariff 1 / 4 bis - central bankers'speeches shield " which protects households from increases in energy prices. although such fiscal measures are politically needed, they should remain temporary, in addition to being targeted more precisely at consumers who need them the most, and targeted in keeping a " price signal " that provides an incentive to decrease energy consumption, in order to help minimise the risk of energy shortages. they should also be further coordinated at the european level. b. monetary policy will be efficient to bring inflation back towards 2 % let me clarify something fundamental : in the medium term, the real answer to inflation is not fiscal, it is monetary. in the euro area and elsewhere, although it retains a strong external component ( around half of headline figures in the euro ), inflation is becoming more " domestic " and broad - based. in october, core inflation ( which excludes energy and food ) stood at 5. 0 % in the euro area. monetary policy has a more direct impact on core inflation, and central banks cannot not let it get out of hand and persist. this our mandate, and our responsibility. therefore a normalisation in our stance has been clearly warranted over the last year. the ecb governing council decided on 27 october to raise its key rates by another 75 basis points, the third significant increase in a row, bringing the deposit facility rate to 1. 5 %. in doing so, we have removed a substantial part of our accommodative policy, and are clearly approaching the " normalisation range " which can be estimated at around 2 % in the euro area. we should reach this level by december. beyond this, we will probably continue to raise rates, but we may do so in a more flexible and possibly less rapid manner - " jumbo " rate hikes will not become a new habit. since july, we have been making decisions on a meeting - by - meeting basis. a favourable condition to interrupt rate hikes would be clear signs of a turnaround in the core inflation trend, i. e. excluding energy and food. one word about the comparison with the