Second, the horizontal nature of the qualitative assessment does not mean that every year one or more firms must receive an objection on qualitative grounds. The comparative approach helps ensure that firms are evaluated consistently and fairly. And it does allow us to see where specific firms may be outliers from good practices followed in the rest of the industry.
This is deemed to be important on account of the essentially monetary origins of inflation over the longer term. Second, a broadly based assessment of the outlook for price developments and the risks to price stability in the euro area as a whole is carried out.