ECB should consider targeting inflation in a band: Müller
FILE PHOTO: Sign of the European Central Bank is seen ahead of a news conference on the outcome of the Governing Council meeting, outside the ECB headquarters in Frankfurt, Germany, March 7, 2019. REUTERS/Kai Pfaffenbach/File Photo
The ECB is preparing for a broad review of its monetary policy next year with a particular focus on the interpretation of its target of keeping inflation at close to but below 2%, a level it has undershot since 2013. “One could imagine that under some circumstances we are OK with some flexibility around 2%, maybe bigger than so far,” Müller told Reuters on the sidelines of a news conference in the Estonian capital Tallinn. He added there should be a discussion about a targeted band, as suggested by other policymakers.
“Maybe in this case we would not need to be as aggressive with our policies. We could be more flexible and not chase that goal at any price,” Müller added.
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