European Central Bank Strategy Review

ECB Strategy Review

The European Central Bank Strategy Review Outcome

The European Central Bank (ECB) has published its new monetary policy strategy, following a thorough review that began on 23 January 2020. The aim of the review was to make sure the ECB’s monetary policy strategy was fit for purpose, both today and in the future. It covered all aspects of the ECB's monetary policy within the framework of its mandate, which is to maintain price stability.

Over the last 18 months, the ECB held numerous seminars, presentations, discussions and meetings focused on all elements of the review. The current review has been a collective effort by staff at the ECB and the national central banks of the euro area (including Central Bank of Ireland) organised in 13 separate work streams.

In the framework of the review, the ECB and the national central banks hosted listening events with the general public, civil society and academia. Ideas and perspectives shared at these events have fed into the Governing Council's deliberations.

The outcomes from the ECB's new monetary policy strategy statement include:

  • New strategy adopts symmetric 2% inflation target over medium term;
  • Governing Council confirms that Harmonised Index of Consumer Prices (HICP) remains appropriate price measure and recommends inclusion of owner-occupied housing over time;
  • Governing Council approves ambitious climate change action plan;
  • Monetary policy communication will be more layered to reach a wider audience and outreach events with the public will become a structural feature;
  • Governing Council intends to carry out periodic strategy assessments, with the next expected in 2025.

You can read the ECB's new monetary policy statement get more information about the ECB's action plan to include climate change considerations in its monetary policy strategy or find out about the 13 separate work streams and the key topics they looked at for the strategy review.

About the ECB's Strategy Review

As part of the review, the ECB looked at:

  • What is meant by "price stability" i.e. what rate of inflation we should aim for
  • How the ECB analyses the economy, to ensure risks to price stability are seen in good time and the affect that decisions have on stakeholders – like consumers, companies, markets and banks –are well understood.
  • How issues such as employment, social inclusion, climate change and financial stability are relevant as the ECB pursues its primary mandate
  • The monetary policy instruments that the ECB uses, including interest rates and asset purchases
  • The way the ECB and the national central banks connect to people and communicate, because the euro is a public good and all citizens should be able to understand the ECB’s mission and decisions.

The Central Bank also held a number of listening events hosted by Governor Makhlouf to provide interested stakeholders with opportunities to contribute their perspectives on topics related to the ECB's Strategy Review.

In December 2020, we held a virtual listening event with representatives from the academic community that focused on economic and monetary policy perspectives.

Virtual Listening Event (December 2020) – Full Report | pdf 303 KB Virtual Listening Event (December 2020) – Summary Report | pdf 860 KB

In February 2021, we held two virtual listening events to engage with representatives from the business community and with representatives from civil society.

Virtual Listening Event (February 2021) – Report | pdf 738 KB

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