ECB: from a supply to a demand-driven floor?

Eurozone’s central bank expected formally to abandon corridor in forthcoming operational framework review

European Central Bank officials will enter a key debate in the coming weeks. But, despite still too-high inflation, this one will not revolve around the number of rate increases needed to durably bring inflation back to the 2% target. Instead, the governing council will discuss changes to the central bank’s operational framework. Although technical in nature, the final choice will be determined in part by the very nature of the eurozone: a monetary union with fragmented fiscal policies as well

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