The European Central amends inflation target and enhances the role of climate
Today, the European Central Bank set a new inflation target of 2% over the medium term, abandoning the previous formula of "below 2% but close to 2%" as it played a major role in the fight against climate change and embarked on a fundamental transformation of Europe's most powerful financial institution. "We think the 2% target is clearer, simpler to communicate and well-balanced, we know 2% will not always be on target and there may be some moderate and temporary deviation in any direction of 2% and that's fine," European Central Bank President Christine Lagarde said at a press conference. .
The ECB emphasized that “this target is symmetric, which means that negative and positive deviations for inflation from the target are equally undesirable” and added that it would “adjust the framework guiding the allocation of corporate bond purchases to include climate change criteria in line with its mandate.”