Comments by ECB governing council member, Robert Holzmann
- Says ECB held heated discussions about changing inflation target last week
- Initial statements suggest inflation target likely to be set at 2%
- Doesn't see a long-term problem from the coronavirus outbreak for now
Despite the likely shift away from the current "below but close to 2%" inflation target, Holzmann isn't really a staunch supporter of the 2% inflation. He has been arguing for a 1.5% target but that deviates from the 'norm' set out by other central banks globally.
In any case, the change may not matter all too much for the ECB at this current stage as they are still seen far away from ever getting anywhere close to 2% inflation. The long-term inflation expectations in the euro area well reflect that sentiment:
