The European Central Bank (ECB) reaffirmed its commitment to act decisively in response to significant deviations in inflation — whether above or below target — as part of its newly outlined five-year strategy, unveiled on Monday. The strategy comes at a time of heightened global economic uncertainty.

“To maintain consistency in achieving our objectives, it is important to take strong, sustained, and proportionate monetary policy actions in response to large and persistent deviations of inflation from the target in either direction,” the ECB stated. The Bank emphasized that such a proactive approach would help preserve the credibility of inflation expectations and prevent long-term divergence from the target.

ECB President Christine Lagarde noted that the era of financial easing is nearing its end, and confirmed that the central bank is now well-positioned to respond to a range of challenges — from global trade shocks to the recent conflict between Iran and Israel.