ECB’s Villeroy: Essential to have an inflation target
|Speaking in Paris late Thursday, the European Central Bank (ECB) Governing Council member and Bank of France Head Francois Villeroy de Galhau said that a monetary policy review is essential for a credible and symmetrical goal for price growth.
Key quotes
“It is essential to have an inflation target.”
“I won’t say what form it will take for us, I won’t anticipate the result. But you can be reassured that a credible and symmetrical inflation objective will remain at the heart of our action.”
“Powell’s speech was important for long-term strategy.”
“The ECB is also in the midst of a strategy review that could change the way it defines its mandate of maintaining price stability. For years, it has undershot its goal of keeping inflation below, but close to, just below 2%.”
These comments come after Federal Reserve (Fed) Chair Jerome Powell's offered for more inflation tolerance by adopting the average inflation targeting framework during his Jackson Hole address.
Market reaction
Despite the rally in the US Treasury yields, EUR/USD trades better bid but remains in familiar ranges above the 1.1800 level.
The spot is currently seen trading at 1.1833, up 0.10% on the day.
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