ECB's Rehn: Inflation expectations have become stuck at a low level

Author: Justin Low | Category: Central Banks

Comments by ECB governing council member, Olli Rehn

  • This is something that the governing council discusses incessantly
  • This is at the core of the strategy review, we want to make sense of it
  • One option is to set price stability target closer to that of other central banks
  • A flexible and symmetric inflation target may be a good option for the ECB to study
Well, things have at least improved in recent months but historically, inflation expectations look to be anchored at really low levels since the drop-off last year. The fear for the ECB is that it stays this way for too long and a deflation mindset starts to set in eventually.

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose