ECB strategy review meeting account: New strategy might imply transitory period of inflation above 2%

ECB releases the account of its strategy review meeting in July

  • ECB considered that price stability was best maintained by aiming for a 2% inflation target over the medium term
  • When rates are closer to the effective lower bound, it might also call for a more persistent use of the ECB’s monetary policy instruments
  • This might also imply a transitory period in which inflation was moderately above the 2% target
  • It was clear that the key ECB interest rates would remain its primary instruments
  • Monetary policy communication geared towards the wider public would be adapted through a more visualised and more accessible approach
  • Full account

Basically just a summary of the latest change in the ECB’s inflation targeting and communication, which we have already come to know in the past few weeks and after the latest policy meeting last week.
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