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New guidance will set the bar higher for rate hikes

The ECB will set out next week what its new strategy implies for its monetary policy. Having nudged up the target to a symmetrical 2% and stressed that it will tolerate some overshooting, the Governing Council will amend its policy statement to underline its commitment to “forceful” and “persistent” policy accommodation. But we do not expect any changes to its policy rates or the pace of asset purchases.

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