Members of the ECB downplayed talk of them adopting the Federal Reserve’s approach to inflation yesterday. The Federal Reserve recently announced that they would adopt an average inflation targeting measure, seen as a more ‘relaxed’ approach, and there was talk of the ECB following suit.
However, several ECB policymakers showed reluctance to follow the Fed with an average inflation target on concerns it could lead to unrealistic expectations about future policy decisions.
Data released this morning shows that German inflation rate declined 0.2% year-on-year in September and 0.2% month-on-month. Later this morning, economic sentiment figures will be released for Germany and the Euro Area.
