Inflation targeting and the ECB’s strategy share important features: the insistence on central bank independence, the priority assigned to the price stability objective, and the importance of transparent communication. These three principles are fundamental to sound monetary policy. Nevertheless, for various reasons, the ECB does not view itself as an inflation-targeting central bank, at least not in the way inflation targeting is commonly described.
These facilities are designed to ensure that credit would flow to borrowers and thus support economic activity. On March 23, the Board announced that it would support consumer and business lending by establishing the Term Asset-Backed Securities Loan Facility (TALF). The TALF is authorized to extend up to $ billion in loans and is backed by $ billion in CARES Act equity.