also like to emphasise that our management of the risk of an adverse development in house prices and household indebtedness does not in any way mean that we consider that these aspects see also tucker, p., ( 2006 ), " reflections on operating inflation targeting ”, bank of england quarterly bulletin : summer 2006. have greater relevance for what is regarded as desirable monetary policy than, for instance, the situation in the labour market. from time to time situations will arise where we will need to take into account, in a different way than the usual, the risks of adverse economic developments that are difficult to quantify. recently this has been house prices and household indebtedness, but in the future it could be other variables. this is an important dimension of the flexibility in our inflation - targeting policy. the current situation let me conclude with a few comments on our most recent monetary policy decision. a more detailed account is provided in the separate minutes of the monetary policy meeting, which were published the day before yesterday. we chose at our monetary policy meeting on 29 august to raise the repo rate by 0. 25 percentage points. now that we have chosen to conduct less expansionary monetary policy, this is because we have made the assessment that it is necessary to avoid inflation being above target a couple of years ahead, while at the same time it contributes to a balanced development in the real economy. the increase in the repo rate is in line with the repo rate path expected by the market and which was used as a basis for the inflation forecast. on the one hand, the high gdp growth indicates that inflation could rise more quickly in future than we assumed in june. but on the other hand, productivity has been slightly stronger than expected, which has contributed to holding back cost developments and the rate of increase in unit labour costs. this has a dampening effect on inflation. however, there are indications that the labour market is beginning to strengthen, which should contribute to rising cost pressures. our overall assessment was that inflation will increase and will be in line with the target a couple of years ahead, given that the repo rate is increased approximately in line with market expectations. our assessment at the monetary policy meeting was that the upside risks and downside risks were roughly equal. among the upside risks we mentioned were higher energy, oil and electricity prices, with a risk of contagion effects and a higher rate of wage increase following on from good growth in the economy. the downside risks included

effect of solvency 2 on more “ risky ” investments, which are necessary to ensure the proper functioning of our economy : equities, whether listed or unlisted, loans to smes and mtes but also green assets or investments in innovative companies. - finally, we know that solvency ii is more volatile than the previous regime. measures have already been integrated to limit the procyclical effects of a market value - based balance sheet. it is worth mentioning the matching adjustment, 3 the volatility adjustment 4 and the symmetric adjustment for equity risk, 5 which complement a set of transitional measures to ensure a gradual entry into force of the new regime. the effectiveness of these measures should be assessed in the coming years, and if it proves inadequate, amendments should be proposed. 3 which takes account of the reality of asset - liability matching. 4 which adjusts changes in bond spreads not linked to default risk. 5 which adjusts the capital charge according to the position in the equity cycle. page 7 sur 7 * * i could also have talked about digital technology, or climate change ; i know you are already dealing with these issues. going forward, however, there is one thing we can be sure of : in a world of uncertainty, and therefore of volatility, the business of insurance, your business, will remain central to two key challenges : protecting against risks and preparing for the long term. insurance is a strength, both for france and for its economy. as the industry continues to evolve, rest assured that the acpr ’ s staff will remain fully committed to supporting you day - to - day. thank you for your attention.