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ECB Meeting Preview - All about the Forward Guidance
Following the ECB’s recent strategy review whereby we saw a shift in the inflation target from below, but close to 2% to a symmetrical 2% with room for temporary overshoots when needed. They also made sure to emphasize it will be different to the Fed’s AIT. This has been done to try and remove the deflationary bias embedded in their previous inflation targeting regime. Housing has also been incorporated into their inflation calculations, which should help see some modest uplift in the Harmonised Index of Consumer Prices (ECB’s main inflation indicator). I’m not expecting any major policy shifts at this ... (full story)