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The European Central Bank will adhere to past stimulus policies in its strategic assessment.
Jin10 data reported on May 13, several decision-makers at the European Central Bank stated that the ECB will adhere to the aggressive stimulus policy of the past decade in its strategic assessment, avoiding calls for self-criticism after experiencing high inflation and massive losses. This assessment began in March and will address some major questions regarding how the ECB operates, including whether large-scale bond purchases, negative interest rates, and providing guidance on future interest rate trends are still good policy tools. Dialogue with ECB policymakers indicates that the central bank will largely acknowledge its past generous measures, making only minor adjustments to a strategic document updated four years ago. The ECB is unlikely to criticize its actions during the sudden inflation surge of 2021-22. Sources say that especially when inflation and interest rates are low, the ECB may retain the need for "particularly strong or sustained" actions. This is synonymous with quantitative easing (QE) bond purchases and other stimulus measures.