Isabel Schnabel, a member of the Executive Board of the European Central Bank (ECB), stated that the ECB's Governing Council has acted promptly since the outbreak of the Middle East conflict worsened the inflation outlook. Since June, the ECB has raised key interest rates by 50 basis points, increasing the deposit facility rate from 2% to 2.5%, to ensure inflation returns to its 2% target in the medium term. She emphasized that monetary policy cannot resolve the root causes of shocks, but if supply shocks are large or persistent enough to cause the expected inflation path to exceed the target, the optimal response is to tighten monetary policy.