MNI BRIEF: ECB To Keep 2% Infl'n Target In '25 Strategy Review
The European Central Bank will stick to its 2% symmetric inflation target as part of its 2025 Strategy Review, President Christine Lagarde confirmed in a speech on Friday.
Lagarde emphasized the need for the ECB to continuously reassess its analytical framework to adapt to a changing economic landscape, highlighting the importance of managing uncertainty from structural shifts such as global fragmentation and digitalization, while improving how the central bank incorporates risk assessments. This includes balancing baseline forecasts with real-time data, using alternative scenarios, and maintaining a medium-term orientation.
The Strategy Review will also focus on distinguishing between cyclical and structural drivers of inflation, Lagarde said, integrating advanced techniques like artificial intelligence to enhance economic forecasting. It will aim to apply lessons learned from past periods of high and low inflation, refining the ECB’s approach to monetary policy transmission in the face of evolving challenges.
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