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ECB’s Governing Council Updates Monetary Policy Strategy
Frankfurt am Main – June 30, 2025 – The European Central Bank (ECB) today announced a significant update to its monetary policy strategy. Following an extensive review process, the Governing Council has finalized a revised framework designed to ensure the ECB remains effective in achieving its primary mandate of price stability in the evolving economic landscape.
The strategy update, a comprehensive undertaking that involved broad consultation with the public and various stakeholders, reaffirms the ECB’s commitment to its core objective. The overarching goal remains to maintain inflation at 2% over the medium term. This target is considered optimal for supporting sustainable economic growth and employment within the euro area.
A key element of the updated strategy is the explicit recognition of the symmetric nature of the 2% inflation target. This means that deviations below and above the target are considered equally undesirable. This clarification underscores the ECB’s resolve to act decisively to counter both inflation that is too low and inflation that is too high, ensuring that price increases are stable and predictable.
Furthermore, the strategy incorporates a more nuanced understanding of the transmission of monetary policy and the challenges posed by the current economic environment. The ECB has acknowledged the increasing importance of factors such as climate change, digitalization, and the structural shifts within the economy. The updated strategy aims to better incorporate these considerations into the ECB’s analysis and decision-making processes.
The ECB will also enhance its communication framework to provide greater clarity and transparency to the public. This includes a commitment to more detailed explanations of its monetary policy decisions and the reasoning behind them, fostering a deeper understanding of the ECB’s actions among citizens and market participants.
This strategic review represents a forward-looking approach by the ECB, demonstrating its adaptability and commitment to fulfilling its mandate effectively in the years to come. The updated strategy is expected to guide the ECB’s monetary policy operations and provide a robust framework for navigating future economic challenges and opportunities within the euro area.
ECB’s Governing Council updates its monetary policy strategy
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Bacno de España – News and events published ‘ECB’s Governing Council updates its monetary policy strategy’ at 2025-06-30 10:15. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.