In a speech, ECB Executive Board member Isabel Schnabel said, “to avoid that low inflation becomes entrenched in expectations and activity, we have changed our definition of price stability to a clear and symmetric 2% target in the medium term.”
Also, with policy rates close to the “lower bound”, “we intend to react especially forcefully or persistently to disinflationary shocks.” The may imply a “transitory period” with inflation moderately above target.
