Skip to content

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

Christine Lagarde

Photographer: Alex Kraus/Bloomberg

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.