ECB Inflation Response Was ‘Firmly Grounded’ in Strategy Revamp
- Blog post says overhaul helped anchor expectations for prices
- Policy makers have been criticized for acting too slowly
Christine Lagarde
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank’s response to unprecedented inflation is “firmly grounded” in the strategy it adopted last year, helping to anchor expectations for price gains “more solidly,” according to a blog post on the institution’s website.
Current “undesirably high inflation” follows a long battle against deflationary trends in the 19-member euro zone, with the transition from record-low interest rates needing to be “gradual,” authors Ursel Baumann, Christophe Kamps and Manfred Kremer said.