Both the Fed and ECB are in the process of reviewing their approach to monetary policy. Over time, central banks have materially changed their approach to address shortcomings which have inevitably emerged. Reviews of this magnitude are expected to result in change. As the caustic effects of persistently low interest rates are showing through ever more clearly, we expect that the primacy of inflation targeting on a medium-term basis will be de-emphasised in the pursuit of superior longer-term economic quality. Whilst the extent of change which will emerge is uncertain, the probable direction of influence is depicted in the following chart. Our full report is available here.