EPV - ECB adopts symmetric 2% inflation target as result of monetary policy review

Stephan Behnes/iStock via Getty Images Following in the footsteps of the Federal Reserve, the European Central Bank's Governing Council adopts a symmetric 2% inflation target over the medium term as part of its monetary policy. The change was made after the central bank started a review of its monetary policy on Jan. 23. The switch to a symmetric inflation target means that inflation may run moderately above target during a transitory period to make up for lagging the 2% target. The euro rises 0.4% against the U.S. dollar. The Vanguard FTSE European ETF drops 1.2% in premarket trading. U.S. 10-year Treasury yield, at ~1.28%, increases from 1.25% at ~7 AM ET. The ECB's Governing Council also confirmed the set of ECB interest rates remains its primary monetary policy instrument. Other instruments, including  forward guidance, asset purchases and longer-term refinancing operations, that the ECB has used when interest rates have stayed super low will remain

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ECB adopts symmetric 2% inflation target as result of monetary policy review