The European Central Bank will stand by its aggressive stimulus policy of the last decade in a strategy review, side-stepping calls for self-criticism after a bout of high inflation and sizeable losses,

Panetta’s observation is an advance on the ECB’s assessment last month that “the disinflation process is well on track” and arrived on the same morning that Spain revealed annual consumer price gains slowing below 2% for the first time in seven months. Italy and Germany are also scheduled to release equivalent data on Friday.

The policy divergence between the European Central Bank and the Bank of Japan is becoming increasingly clear. While the ECB looks set to continue reducing rates cautiously amid mixed economic signals, the BoJ is under growing pressure to tighten further as inflation gains traction.

Inflation falls to 1.9% in May but core inflation remains above 2%. The Consumer Price Index (CPI) reaches its lowest value since last October.View on euronews

“While it is fairly obvious that international trade will never be the same again, it’s also pretty clear that there will be further negotiations,” she said in an interview with the Canadian Broadcasting Corp. on the sidelines of the Group of Seven meeting of finance officials in Canada.

European Central Bank Governing Council member Klaas Knot warned that “historically large shocks” in the global economy and their fallout on prices will be hard to navigate and require flexibility from policymakers.

The European Central Bank will almost certainly cut interest rates on June 5, with a more than 70% majority of economists polled by Reuters expecting policymakers to pause for the first time in a year in July despite a weak economy at risk from the U.