In this context, the exercise also offers an opportunity to highlight the balance sheet repair measures that have already been taken during the last months. The expectation of the forthcoming AQR has already had positive effects on the banks involved.
Price stability, balanced growth and a high employment rate are mutually consistent goals, and successful monetary policy improves the well-being of citizens by focusing on price stability. To this end, targeted monetary policy communication can improve people’s understanding of how monetary policy responds to current and projected economic conditions.