The European Central Bank (ECB) has raised its medium-term inflation target to two percent in its review of its monetary strategy. The target is symmetrical, which means that deviations downwards and upwards from the target are equally undesirable. The ECB said this in a press release today. So far, the bank has set an inflation target just below two percent, which was misleading, according to some analysts.
The first revision of the ECB’s strategy since 2003 has been one of the priorities of Central Bank President Christine Lagarde since she took office at the end of 2019. The ECB sets the monetary policy of 19 countries that use the single European currency, the euro.