New forward guidance is “elemental” for ECB strategy, Lane says
Chief economist implicitly disagrees with Belgian governor’s criticism of new wording
The European Central Bank’s chief economist Philip Lane says its new forward guidance will play an “elemental” role in helping reach its inflation target.
Lane used a blogpost published on August 19 to stress the merits of its new strategy. In July the ECB adopted a symmetric 2% inflation target, aiming to end the eurozone’s very low inflation.
On July 22, in its first policy meeting with the new target, the ECB governing council modified its forward guidance. It now says the ECB will maintain
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