ECB to change policy guidance at next meeting

FILE PHOTO: The headquarters of the European Central Bank (ECB) are pictured in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski/File Photo

FRANKFURT (Reuters) – The European Central Bank will change its guidance on the next policy steps at its July 22 meeting to reflect its new strategy, ECB President Christine Lagarde said in an interview that aired on Monday.

“There will be a forward guidance review (on July 22) because we have to align with the strategy review that we’ve just completed,” Lagarde told Bloomberg TV.

“My sense is that we will continue to be determined by maintaining favourable financing conditions in our economy,” she added.

Announced last week, the ECB’s new strategy allows it to tolerate inflation higher than 2% when rates are near rock bottom, such as now.

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