I posted on this earlier in the session, a reminder ICYMI.
- The European Central Bank has completed its 18-month strategy review and is set to announce the results today.
- announcement is scheduled for 1100 GMT
- European Central Bank President Lagarde will speak following at a 1230 GMT news conference
The main point is the change to the Bank's inflation target.
- likely to set its inflation target at 2%
- ditching its current target that is "below but close to 2%"
- target is also likely to be declared symmetric (an optimistic declaration ongoing on to a decade missing to the downside) and the Bank will accept an overshoot
- the Bank may also follow the lead of the Fed in targeting average inflation over a period
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Try not to laugh too much when the bank says it will accept an inflation overshoot. The current projections the ECB have is for core inflation in 2023 at 1.4%. Not in the same basket case as the BOJ but well short of 2% two years out.
New Prez and former Prez.
