Homework answers / question archive / 2- In its meeting on July, 2020 European Central Bank did not change the policy rate but made the following announcement: “The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics

2- In its meeting on July, 2020 European Central Bank did not change the policy rate but made the following announcement: “The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics

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2- In its meeting on July, 2020 European Central Bank did not change the policy rate but made the following announcement: “The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics. ' It is an example of which unconventional policy we discussed in class? Explain how does the policy works. (20 pts)