ECB kicks off listening tour as part of strategy review
FRANKFURT (Reuters) - The European Central Bank is launching a series of town-hall style events across the euro zone to collect feedback from the general public as part of its one-year review of monetary policy, it said in a statement on Monday.
Dubbed the "ECB Listens" after a similarly branded event run by the U.S. Federal Reserve last year, the ECB plans to engage civil society in all 19 euro zone countries, gauging the public's view on the ECB’s policies.
The ECB launched its review last month, a deep dive into the bank's foray into unconventional policy following the euro zone debt crisis that is likely to bring a redefinition of its inflation target.
"Representatives of a wide range of regional and consumer organisations, as well as social partners, will have the opportunity to share their views on the ECB’s policies," the ECB said in a statement.
Although the discussion about the new inflation target has yet to start, initial statements from policymakers suggest it is likely to be set at 2%, a slight shift from its current definition of "below but close to 2%".
The biggest discussion is likely to be on how much deviation from this target the ECB could tolerate and how to define the boundaries of this tolerance.
The ECB has persistently undershot its target since 2013 despite the unprecedented stimulus measures it has taken, prompting some to argue that its control over price growth has diminished as the world economy becomes more integrated.
The ECB will kick off the consultation with its own event in Brussels on March 26 and the euro zone's 19 central banks will follow with local engagements, mostly in the first half of 2020.
"We want to listen to the views, expectations and concerns of the public with an open mind”, ECB President Christine Lagarde said in a statement.
The public consultation is also likely to gauge views on why households perceive inflation to be much higher than actual data shows and will also look at what more the ECB could do to help fight climate change.
(Reporting by Balazs Koranyi; Editing by Catherine Evans)
