ECB adopts 2% symmetric inflation target
Central bank chooses not to follow Federal Reserve’s lead on average inflation targeting
The European Central Bank has adopted a 2% symmetric inflation target after the conclusion of its strategy review, it announced today (July 8).
As reported by Central Banking on July 6, the ECB’s governing council decided to avoid following the US Federal Reserve and adopt average inflation targeting. This would have entailed a commitment to offset years below the target with a period over it.
In its official statement, the governing council said it “considers that price stability is best
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