The European Central pledges to support the economy


Frankfurt – Reuters:

The European Central Bank unveiled new monetary policy targets yesterday that point to longer support for the battered eurozone economy, in line with its recent commitment to boost inflation much lower and nearly a decade short of its 2% target. The central bank said two weeks ago, unveiling a new strategy and an adjusted inflation target, that prolonged periods of low inflation required “particularly strong and persistent” support, hinting that the stimulus could last longer than many expected. The bank said it expected interest rates to remain at current levels or below until inflation hits the 2 percent target “well before” the end of its forecast horizon, while keeping borrowing costs unchanged until the end of the forecast horizon. He added that efforts to raise inflation should be consistent with its stability at the level of two percent in the medium term. “This may also imply a transition period in which inflation will be moderately above target,” the central bank statement said».


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