European Central Bank watchers are virtually convinced President Christine Lagarde will change the institutions inflation goal for the first time in 17 years as she attempts to achieve the price stability that eluded her predecessor.To get more news about WikiFX, you can visit WikiFX news official website.
Almost 90% of respondents in a Bloomberg survey predicted the ECB will officially alter its strategy to give equal weight to too-low and too-high inflation. Half said the current aim of “below, but close to, 2%” will be made more precise.
　　The ECB is trying to understand why inflation has fallen short despite years of negative interest rates and 2.6 trillion euros ($2.9 trillion) of bond purchases under Mario Draghi, who held the presidency from 2011 until late last year. Clarifying or changing the definition of price stability might help policy makers hit their mandate, though it also risks accusations that theyre simply moving the goalposts.
　　Building Expectations
　　Economists are developing views on results of ECB strategy review
　　With the survey also showing economic concerns easing, Lagarde should have the headroom to conduct the most comprehensive reappraisal since at least 2003 -- lasting most of this year and, in her words, having “no preconceived landing zone.” Shes told Governing Council members she wants to get the process under way at the Jan. 23 policy meeting.