Governor’s statement following the meeting of the Governing Council of the ECB: ECB monetary policy strategy review complete

 

Euro area central bank governors approved a new monetary policy strategy this week. In it we have revised our approach to meeting the primary objective of price stability, and have also set out the instruments used to do so. The strategy also outlines the steps to be taken by central banks in facing the challenges posed by climate change. 

The key points of the strategy are:

- a shift in the inflation target to 2% over the medium term
- the target is symmetric, which means that negative and positive deviations are considered equally undesirable
- standard and non-standard measures will be used to meet the target
- an awareness that in consequence there may be transitory periods when inflation is moderately above target
- systematic consideration of climate factors in monetary policy decision-making

Banka Slovenije highlights that the updated strategy sets out guidance to allow us to respond effectively to current structural changes and to the challenges that lie ahead.