Economics
ECB Agrees on New Inflation Goal of 2%, Will Allow Overshoot
- Change is part of biggest strategic overhaul since 2003
- Review will also address contribution to climate-change fight
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European Central Bank policy makers have agreed to raise their inflation goal to 2% and allow room to overshoot it when needed, according to officials familiar with the matter.
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 consensus emerged at a special meeting on Tuesday and Wednesday to conclude the ECB’s first strategy review in almost 20 years.