ECB's Villeroy: A credible, symmetrical inflation target is key

Author: Justin Low | Category: Central Banks

Comments by ECB governing council member, Francois Villeroy de Galhau


  • The new thing that Powell says is flexible targeting of an average inflation
  • Each of those adjectives count i.e. flexible and average
  • ECB not obliged to do the same
  • But what is certain is that inflation objective needs to be credible, symmetrical
  • Both adjectives i.e. credible and symmetrical are at the heart of our action
  • ECB does not have an exchange rate objective
We're hearing more central bank policymakers open up on their thoughts after the Fed strategy change yesterday, with Villeroy's remarks above following the RBNZ earlier.

So far, the ECB isn't really giving much away but they are to undergo a strategy review that will begin next month so that will certainly be where they will emphasise any change towards their inflation objectives moving forward.


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