ECB to adjust inflation target in order to stimulate the economy

The European Central Bank (ECB) is considering a possible adjustment to its inflation target. That is what Bloomberg press agency writes based on insiders. Employees of the bank analyze the current approach of the ECB and also look at whether the current goal of “close by, but slightly below 2 percent” still fits the current time.

ECB president Mario Draghi would be in favor of a so-called symmetrical approach. In addition, inflation may be slightly below or slightly above 2 percent. This would allow the ECB to raise inflation somewhat after a period of economic weakness in order to keep the price rise.

If the approach were changed, ECB policymakers could pursue a somewhat stronger policy of stimulation. Indeed, inflation may rise somewhat further.