The 2021 ECB Strategy Review: analysis and implications

The ECB strategy review was announced on the 8^th of July 2021.

There are two main innovations that the new strategy brings to the field: a specific inflation target of two per cent, which replaces the old double-key formulation, and a new inflation index, which will incorporate owner-occupied housing costs (HICP-OOH).

The macro research team focused on thoroughly analyzing what this means, the likely consequences that this change will have onto the markets and how the ECB will act during the next years, incorporating an analysis of how the new strategy has made the European Central Bank more dovish with respect to its past.