ECB Adopts Comically Belabored, Three-Part Rates Guidance
Following the bank's policy review and the adoption of a symmetric inflation target of 2% (an ostensible improvement compared to the old guidance, which was considered too weak and too vague), the ECB unveiled new language Thursday designed to complement the shift.
The revised forward guidance was necessary in order to "underline [the bank's] commitment to maintain a persistently accommodative monetary policy stance to meet its inflation target." Christine Lagarde last week cryptically suggeste
So, they’re saying the same thing Powell said months ago, essentially?
Eurozone inflation is running much lower than in the US (<2% currently). Eurozone had less and different kind of stimulus, and much of its stimulus hasn’t even started getting paid out. In general Eurozone is a significant way behind the US in recovery cycle – US is in July, EZU might be in December or so, is how I think about it. EZU is also large and autonomous enough that it isn’t forced to hike rates in response to US or USD moves.