- In a surprisingly early conclusion of its monetary policy strategy review, the European Central Bank (ECB) rolled out several changes that will likely keep monetary policy easier for longer.
- The good news: The ECB adopted an easy-to-understand, symmetric (i.e., negative and positive deviations of inflation are equally undesirable) 2% inflation target.
- The not so good news: The ECB did little to explain how it will achieve 2% inflation, other than committing to “especially forceful or persistent monetary policy measures to avoid negative deviations from the inflation target”.
For further details see:
ECB: New Inflation Target, Old Tools