May 29, 2019
LONDON (Reuters) – The European Central Bank should review its monetary policy strategy and loosen its definition of price stability, ECB rate setter and Bank of Finland chief Olli Rehn said at a Reuters Breakingviews event on Wednesday.
Persistently low inflation across the developed world has prompted a debate about central bank policy and the effectiveness in reaching inflation targets.
Rehn said he would not change the ECB’s mandate “per se” but would examine the definition of price stability.
“My view is that 2% is not a ceiling and inflation can deviate in both directions,” Rehn said.
(Reporting by Marc Jones and Dhara Ranasinghe.)