The ECB today published details of its updated monetary policy strategy. The update is part of a periodic process that the members of the Governing Council decided on following the previous strategy review five years ago. The key finding of the strategy review on this occasion is that the monetary policy framework, the toolkit and the approach remain fit for purpose. The next assessment of the appropriateness of monetary policy strategy is scheduled for 2030.
The key findings of the monetary policy strategy review are:
The Governing Council confirmed the symmetric 2% inflation target over the medium term.
Symmetry requires an appropriately forceful or persistent policy response to large, sustained deviations of inflation from target in either direction.
All existing monetary policy tools remain in the toolkit. They will be chosen, designed and implemented to enable an agile response to new shocks.
Structural shifts such as geopolitical and economic fragmentation and the increasing use of artificial intelligence are making the inflation environment more uncertain.
The first regular monetary policy meeting of the Governing Council applying the updated strategy will be held on 23 and 24 July 2025. The Governing Council intends to periodically assess the appropriateness of its monetary policy strategy, with the next assessment scheduled for 2030.
For more about the individual findings, see the ECB press release and the ECB’s monetary policy strategy statement.
Christine Lagarde, president of the ECB, also spoke about the updated strategy at a press conference.