Speaking in Paris on Thursday evening, European Central Bank (ECB) Member of the Governing Council and head of the Banque de France, François Villeroy de Galhau, has said that a review of monetary policy is essential for a credible and symmetrical target of price growth.
“It is essential to have an inflation target.”
“I will not say what form it will take for us, I will not anticipate the result. But you can rest assured that a credible and symmetrical inflation target will remain at the heart of our action.
“Powell’s speech was important for long-term strategy.”
“The ECB is also in the process of reviewing its strategy which could change the way it defines its mandate to maintain price stability. For years, it fell short of its target of keeping inflation below, but close to just below 2%. “
The comments come after Federal Reserve (Fed) Chairman Jerome Powell proposed greater tolerance for inflation by adopting the medium inflation targeting framework during his speech in Jackson Hole.
Despite the rise in US Treasury yields, EUR / USD is trading better but remains in familiar ranges above the 1.1800 level.
The spot is currently trading at 1.1833, up 0.10% on the day.