European Central Bank (ECB) policymakers are still divided on their new inflation strategy but they hope to reach an agreement before debating the future of their pandemic-fighting programme in September, Reuters reports, citing three sources close to the matter.
Key takeaways
“There was general consensus at the June 18-20 gathering that the ECB could tolerate inflation exceeding its new goal, to be set at 2%, as it has been stuck below that level for most of the past decade.
“But the source said policymakers had yet to agree on how to phrase that message and how specific it should be about the extent to which inflation would be allowed to overshoot and for how long.”
“The ECB was still hoping to wrap it all up before the Sept. 9 meeting of the Governing Council, when rate setters may decide on the future of their Pandemic Emergency Purchase Programme.”
Market reaction
EUR/USD came under fresh selling pressure and fell about 10-pips on the above headlines.
The spot was last seen trading at 1.1885, down 0.26% on the day.
