7/8/2021, 1:02 PM (Source: TeleTrader)
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ECB sets its inflation target at 2% in strategy review

The European Central Bank (ECB) published on Thursday its strategic review, setting the inflation target at 2%, as opposed to its previous aim which was defined as "below, but close to 2%."

The statement mentioned a possibility of a "transitory period" during which inflation is expected to "moderately" overshoot 2%, but also underlined that both negative and positive deviations from the inflation goal are "undesirable."

"While taking the ECB's primary mandate of price stability as a given, the review has allowed us to challenge our thinking, engage with numerous stakeholders, reflect, discuss and reach common ground on how to adapt our strategy. The new strategy is a strong foundation that will guide us in the conduct of monetary policy in the years to come," ECB President Christine Lagarde commented.

Baha Breaking the News (BBN) / BU