ECB's Villeroy: ECB might let inflation rise above 2% for some time
Further comments by Villeroy
- Inflation target should be perceived as flexible, symmetric
- That means numerical objective is a target, not a ceiling
- Medium-term inflation target cannot ignore the past
First, he says that one should not assume that they will follow the Fed's strategy and then he delivers such a headline remark. I reckon we can all look past the semantics because in the race to the bottom, nobody wants to get left behind.
As for how realistic 2% inflation would look like in the euro area, let's just say that a glance at the core inflation over the years will tell you all you need to know: