ECB to hold special strategy meeting next week – Bloomberg
|The policymakers of the European Central Bank will hold a special meeting in Frankfurt next week to reach a decision on a new definition of price stability, as a part of the institution’s strategy review, Bloomberg reports, citing comments from David Marsh, Chairman of the Official Monetary and Financial Institutions Forum.
Key takeaways
“The meeting is expected to start with a Governing Council dinner on Tuesday and could extend through Thursday.”
“An announcement may be made afterward if agreement can be reached.”
“There’s broad consensus that the current inflation target of “below, but close to, 2%” should change, but disagreement on what should replace it. Some favor a precise goal of 2% with the flexibility to reach it, and some -- especially from southern Europe -- want an explicit pledge to tolerate higher rates after shortfalls.”
“The discussion may also shape the ECB’s plans for when and how to exit the emergency measures it deployed during the pandemic.”
Market reaction
EUR/USD remains under pressure around 1.1850 amid broad-based US dollar strength, unfazed by the tentative announcement of the ECB’s special strategy meeting next week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.