Maintaining a mediumterm orientation, keeping a close eye on monetary and credit dynamics, and adopting a broader, stability-oriented view of policy making – which are key elements of the ECB’s monetary policy strategy – supports this approach. Our monetary analysis provides us with a framework within which to assess the dynamics of asset prices, money and credit from a medium-term perspective.
For example, monetary analysis was decisive in our decision to keep the ECB policy rate at 2%, instead of reducing it further, in the summer of 2004 and to start raising it in late 2005.