Rehn says ECB should adopt average inflation targeting
Finnish governor says current target has “asymmetric downward bias”
The European Central Bank should consider adopting average inflation targeting (AIT), Bank of Finland governor Olli Rehn said in an interview with Central Banking.
In August, the US Federal Reserve announced the adoption of AIT, by which it would allow inflation to overshoot the 2% target in a bid to offset periods below it. The ECB is currently reviewing its monetary policy framework, with the inflation target a major topic.
Rehn told Central Banking that he would like the ECB to replace its
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