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Over the past two years, inflation in the euro area has surged significantly, and despite recent deceleration, it continues to remain excessively rapid. Consequently, the European Central Bank (ECB) has notably tightened its monetary policy. The policy rates have been raised by 4.25 percentage points, and the ECB's key deposit rate for banks stands at 3.75 percent. "The current scale of monetary policy restrains economic growth and hampers inflation.

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