Market Pulse Archives

July 22, 2021, 8:00 a.m. EDT

ECB tweaks forward guidance in line with new, symmetric inflation target

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

or Cancel Already have a watchlist? Log In

By William Watts

The European Central Bank, as expected, left interest rates and its program of asset purchases unchanged Thursday, while tweaking its forward guidance on policy to put it in line with its newly adopted inflation target. The ECB earlier this month completed a strategic review, adopting a symmetric 2% inflation target in place of its previous aim of keeping inflation near but just below 2%. In a statement following its policy meeting, the Governing Council said it expects "key ECB interest rates to remain at their present or lower levels until it sees inflation reaching two per cent well ahead of the end of its projection horizon and durably for the rest of the projection horizon, and it judges that realized progress in underlying inflation is sufficiently advanced to be consistent with inflation stabilizing at 2% over the medium term." The ECB said this "may also imply a transitory period in which inflation is moderately above target."

Get news alerts on Euro — or create your own.
This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.