Original title: ECB releases minutes of meeting to allow euro zone economy to overheat
On the 29th local time, the European Central Bank released the minutes of its monetary policy meeting from the 7th to 8th of this month, the most important of which was to change the medium-term inflation target from "close to but less than 2%" to "2%". This means that there may be a "transition period in which inflation is slightly above target". However, in the minutes of this meeting, there is no mention of the discussions within the agency, but only a summary of the resolution announced on July 8.
In response, European Central Bank Executive Committee member Fabio Panetta said that the European Central Bank will not raise interest rates prematurely, but may allow the euro zone economy to overheat to ensure price stability. And he does not see risks in this way of boosting the economy: "on the contrary, it adds credibility to our efforts to raise inflation to 2 per cent." Panetta stressed in an interview with the media on the 29th that the key is to make full use of the available labor force and create wage pressure in order to raise the inflation rate to the target level. He also pointed out that "the ECB's previous premature interest rate hikes led to excessive downward pressure on inflation and a slowdown in economic growth." (front desk reporter Ruan Jiawen)