In a move which brings it closer in line with the US approach, the European Central Bank (ECB) has decided to adopt the tolerance for inflation overshooting its target. What does this mean for European investors, who have been watching the wrangling within the ECB over the direction of monetary policy for months now?
At the end of January, the new head of the European Central Bank (ECB), Christine Lagarde, announced the launch of a year-long strategic review of the bank’s monetary policy strategy. Stemming from this, there has been much discussion recently about the ECB’s existing “below but close to 2%” inflation target, and whether this needs to be made more specific, both in aim and measurement.
Multiple drivers propelled gold investment in the first half of 2019. We expect this trend to continue in the second half of the year.
