According to the ECB’s new target, inflation should be 2% over the medium term.
European the Governing Council announces that it has taken a historic decision to change its objective of price stability.
According to the new target, inflation should be 2% in the medium term. This means that slower and faster inflation than the target are equally negative.
“With a target of 2% inflation, inflation expectations can be clearly anchored in the target, which is essential for maintaining price stability,” the release says.
Today, the central bank’s goal is to keep inflation slightly below 2% in the medium term.
Price stability objective in addition, the ECB will take greater account of the effects of its monetary policy on climate change in its new strategy.
Strategy reform started in January 2020, but was temporarily suspended due to a coronavirus pandemic.
The news is updated.