(Bloomberg) --
The European Central Bank could still be some distance from following the Federal Reserve in a review of its inflation target.
Policy makers last month discussed how to treat their current objective of inflation “below, but close to, 2% over the medium term,” according to the account of their July 24-25 meeting published Thursday. While they agreed that the target should be treated “symmetrically,” officials were reluctant to consider a full revamp.
“A view was put forward that a discussion of symmetry around the inflation aim couldn't be separated from a discussion about the level of this aim,” according to the account, which doesn't disclose the names of speakers. “At the same time, the point was made that a clarification of the symmetric nature of the Governing Council's ‘reaction function' would not preempt a full review of the monetary policy strategy at a later point in time.”
The exchange suggests any major shift in the ECB's inflation goal -- which it has fallen short of for the better part of the past decade -- isn't imminent. Staff have begun studying ways forward, according to people familar with the matter.
Finnish central banker Olli Rehn has been the main voice calling for wholesale review of the ECB's policy framework. His idea has failed to gain much traction in Frankfurt despite growing calls for global central banks to reassess how their policy works amid persistently soft inflation and record low interest rates.
The U.S. Federal Reserve has so far led the way and plans to unveil the findings of its year-long review of strategy, toolkit and communication practices in early 2020.
To contact the reporter on this story: Piotr Skolimowski in Frankfurt at pskolimowski@bloomberg.net
To contact the editor responsible for this story: Paul Gordon at pgordon6@bloomberg.net
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