European Central Bank unity on its new inflation target could dissolve into division as early as next week when policymakers meet to discuss changing its guidance on raising interest rates, its president Christine Lagarde has warned.
The bank’s rate-setters are due to meet next Thursday for their first discussion since they last week launched a unanimously agreed new strategy, which changes the way the bank sets monetary policy for the first time since 2003.
Lagarde heralded the consensus agreement, which included a new 2 per cent inflation target and an increased tolerance for temporary moves above that level.
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