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By Caroline Grady 24-01-2020

ECB’s Green New Deal?

(4 min read)
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The ECB’s first strategic review in more than 16 years is now officially underway. The findings will shape the future of monetary policy, most likely with an amended inflation target and improved communication.

The inclusion of climate change in the review was duly confirmed, triggering some euro weakness on concern this could be used to engineer further expansion of monetary policy.

But for now, President Christine Lagarde will take comfort in the moderate improvement in growth and inflation dynamics that allow the current policy parameters to remain firmly on hold.
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