In the accounts of June 9-10 meeting, ECB said, “it was stressed that the recovery was at an early stage and lacked robustness, as it depended heavily on policy support”. The projected path for the economy was ” was subject to significant uncertainties and risks”. An ” undue tightening of financing conditions at the current juncture could jeopardise the ongoing economic recovery and the outlook for inflation.”

Hence, “a noticeable slowing of the pace of purchases for the next quarter was therefore seen as inappropriate at the current juncture”. A remark was even made that, “in view of the persistent inflation shortfall projected in the June staff projections, even an increase in asset purchases as the main monetary policy instrument could be justified at present.”

Nevertheless, “in view of the better outlook for growth and inflation and the associated upside risks, it was, however, also argued that, to provide the same degree of accommodation, asset purchases should be scaled back somewhat.” Concerns were also expressed about potential side effects “if the highly accommodative monetary policy stance was maintained much longer.”

Overall, most members consent that net PEPP purchases should continue at a significantly higher pace in Q3. But the “reaction function” on purchases would “continue to rely on a joint assessment of financing conditions and the outlook for inflation over the medium term”.

Full meeting accounts here.

Bundesbank President Jens Weidmann said ECB is “”not striving for either lower or higher rates” of inflation with the new symmetric target. He added, the 2% medium term inflation goal is a “clear and easily understandable objective,” and that “temporary deviations from the target in either direction can occur.”

Separately, Governing Council member Olli Rehn said the “new inflation goal is unambiguous.” Clearly, the “medium-term core inflation forecast of 1.4% below new aim.”

Another Governing Council member Francois Villeroy de Galhau said ECB will still need to analyze the meaning of a “temporary” overshoot of inflation. “We didn’t discuss any duration, we didn’t discuss any numbers. It’s all about the context,” he said. “In monetary policy, you have to combine the direction with judgment. We set the direction very clearly.”

ECB announced to adopts a symmetric 2% inflation target over medium term. Being symmetric meaning “negative and positive deviations of inflation from the target are equally undesirable”.

“When the economy is operating close to the lower bound on nominal interest rates, it requires especially forceful or persistent monetary policy action to avoid negative deviations from the inflation target becoming entrenched,” ECB said. “This may also imply a transitory period in which inflation is moderately above target.”

Also, HICP will remain the appropriate price measures, while the Governing Council recommends inclusion of owner-occupied housing over time.

President Christine Lagarde said, “The new strategy is a strong foundation that will guide us in the conduct of monetary policy in the years to come.”

Full release here.