Oliver Mangan: ECB inflation target means Government can finance its Covid bills
ECB president Christine Lagarde has essentially confirmed that interest rates in the eurozone will remain in negative territory for years to come.
The July meeting of the European Central Bank’s governing council was the first to be held since it changed its inflation target following a strategic review of its policy framework and objectives.
The new inflation objective is now a symmetric 2% target compared to its previous “close to, but below 2%”. This implies that the ECB will allow inflation to run above its 2% target for a short period of time, if required.
