FRANKFURT (Reuters) – Several important issues, including the inflation target and interest rate projections, will not be discussed during the European Central Bank’s upcoming strategic review, ECB President Christine Lagarde said on Thursday.
The strategic review, which will end in the second half of 2025, is more of a progress report than an in-depth review of the functioning of the institution, Christine Lagarde warned.
“We have deliberately avoided any discussion around the symmetrical target of 2% in the medium term, so there will be no debate around the inflation target. A future president of the ECB will be able to debate it, but it will not take place during my mandate,” added the leader.
The ECB seeks to keep inflation at 2%, but economists and policymakers have suggested the central bank needs to be more lenient about deviations from that target, particularly when inflation is below it.
Christine Lagarde also said that the adoption of the “dot plot” by the ECB would not be discussed, “in view of the experience that some of my colleagues have with this element”, added the head of monetary policy.
The “dot plot” is a graph made up of the rate projections of each member of the Federal Reserve’s Monetary Policy Committee. It feeds market players’ expectations of rate movements.
(Report by Balazs Koranyi, by Corentin Chappron, edited by Blandine Hénault)
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