Bloomberg cites anonymous officials familiar with the matter to say, “European Central Bank policy makers have agreed to raise their inflation goal to 2% and allow room to overshoot it when needed.”
“The decision marks a significant change from the previous target of ‘below, but close to, 2%,’ which some policy makers felt was too vague,” the news added, “The consensus emerged at a special meeting on Tuesday and Wednesday to conclude the ECB’s first strategy review in almost 20 years.”
The key update ahead of special ECB meeting also said, “The revamped strategy could give officials the justification for sustaining ultra-loose monetary policy for longer as they strive to reverse years of below-target inflation, which have weighed on the euro area’s economic potential.”
Market reaction
The EUR/USD prices remain depressed below 1.1800 following the news.
Also read: EUR/USD Price Analysis: Bearish momentum intact below 1.1800