Small revolution for the ECB?
The Frankfurt institution, which operates fairly rigidly, unveiled its new strategy on Thursday at a "
special
"
conference
, announced a few hours earlier.
Summarized in a document "
of a double-sided page
", this strategy, approved "
unanimously
" by the Board of Governors, is "
a solid basis which will guide us in the years to come
", pointed out Christine Lagarde, president. of the ECB.
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Three essential changes emerge.
The ECB, whose main mandate is price stability, is relaxing its inflation target.
While for eighteen years, it has sought inflation "
below but close to 2%
", it will now target "
inflation of 2% in the medium term
".
In other words, it gives itself leeway with price increases that may temporarily exceed 2%.
This choice offers more flexibility and eliminates the implicit idea of a ceiling beyond which the bank tightens its monetary policy.
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