The European Central Bank’s Governing Council has launched a review of Monetary Policy strategy.
The review process is expected to be concluded by the end of 2020.
The Governing Council will be guided by two principles: thorough analysis and open minds.
The European Central Bank (ECB)’s Governing Council on 23rd January launched a review of monetary policy strategy.
According to ECB’s statement, the review process is expected to be concluded by the end of 2020.
The statement said that the Governing Council of the ECB will be guided by two principles: thorough analysis and open minds. Accordingly, the Eurosystem will engage with all stakeholders, it said.
“As our economies are undergoing profound changes, it is the time for a strategy review to ensure we deliver on our mandate in the best interest of Europeans,” the ECB President Christine Lagarde said.
The monetary policy strategy was adopted in 1998 and some of its elements were clarified in 2003.
Since 2003 the euro area and the Global Economy have been experiencing profound structural changes.
In the light of those challenges, the Governing Council of ECB has decided to launch a review of its monetary policy strategy.
The Governing Council will review the effectiveness and the potential side effects of the monetary policy toolkit developed over the past decade.
It will examine how the economic and monetary analyses through which the ECB assesses the risks to price stability should be updated, also in view of ongoing and new trends.
Finally, it will review its communication practices.