As part of the European Central Bank’s strategy review, officials will gather in Frankfurt next week to decide on a new definition of price stability, according to Bloomberg, citing comments from David Marsh, Chairman of the Official Monetary and Financial Institutions Forum.
“The meeting is slated to begin on Tuesday with a Governing Council supper and might last until Thursday.”
“An announcement may be made subsequently if agreement can be obtained.”
“There is broad agreement that the existing inflation objective of “below but close to 2%” should be changed, but there is disagreement about what should be replaced. Some prefer a specific target of 2% with the flexibility to achieve it, while others, particularly from southern Europe, want a clear commitment to tolerate higher rates after two “‘tfalls’
“The discussion could potentially influence the ECB’s intentions for phasing off the emergency measures it implemented during the pandemic.”
Despite the possible announcement of the ECB’s special strategy meeting next week, the EUR/USD continues under pressure around 1.1850 due to broad-based US dollar appreciation./n
