Comments by departing ECB governing council member, Benoit Coeure

  • ECB actions have been effective
  • No doubt ECB can ease policy further with current tools
  • Central banks may have to navigate in a low growth, low inflation environment
  • ECB should clarify that the medium-term inflation goal is 2%
  • ECB could communicate a tolerance band for inflation
  • But tolerance band is not an invitation for inaction, complacency
  • ECB could communicate the range of inflation outcomes that can be considered as acceptable in normal times

He is shedding some light on some things that are possibly being discussed by the governing council, but nothing of this is much of anything new. It lays out that pretty much all options are still on the table for an inflation mandate tweak in the upcoming strategy review.

Coeure's full speech can be found here.