Bankinter | The European Central Bank (ECB) has announced an update to its monetary policy strategy, adopting a more rigorous and agile approach to major inflationary shocks in a context of growing global uncertainty. The main new feature is the commitment to act ‘especially forcefully or persistently’ whenever inflation deviates significantly and persistently from the 2% target, regardless of the origin of the shock, whether temporary or structural. The aim is to prevent medium and long-term inflation expectations from moving away from the 2% target, as once they become unanchored, they are very difficult and costly to correct.
ECB to act ‘especially forcefully or persistently’ in face of inflationary shocks regardless of origin
