Indeed, before taking any decision the Governing Council conducts a careful evaluation of the effectiveness, efficiency and proportionality of its actions, including their potential side effects, based on an integrated assessment of all relevant factors. This assessment builds on a revised analytical framework which brings together the economic analysis and the monetary and financial analysis.
Our new strategy also recognises financial stability as a precondition for price stability and vice versa. In line with this, we undertook our first in-depth assessment of the interrelation between monetary policy and financial stability at our December meeting and we will continue to do so twice a year going forward. The second area is how we account for the impact of climate change.