The European Central Bank (ECB) has pledged to keep interest rates at record lows for an even longer period, so that inflation can reach the 2% target.
As it announced today, it will not raise interest rates until it sees the 2% target “long before the end of its forecast horizon and with duration” reached.
The message may be aimed at further postponing expectations for when it will raise interest rates, as inflation is not expected to reach 2% for at least another two years, according to its estimates. of the ECB.
“The Governing Council expects the ECB key interest rates to remain at current or lower levels until it sees inflation reach 2%, well before the end of the forecast horizon and for the remainder of the forecast horizon. “Progress in structural inflation is large enough to be consistent with stabilizing inflation at 2% in the medium term,” the ECB said. “This, he adds, could also mean a transitional period in which inflation moves just above the target.”
At the same time, the ECB confirmed that it will continue to buy bonds under its emergency program (PEPP) during the current quarter at a “significantly higher rate than in the first months of the year”.
AX
