Remarks by ECB chief economist, Philip Lane

  • Symmetrical inflation target means negative or positive deviations of inflation from 2% target are equally undesirable
  • Systematic approach to policy embedded in forward guidance has capacity to boost inflation expectations, strengthen inflation dynamics

The headline basically reads as "we'll interpret things however we want it to be", as we saw Eurozone July consumer inflation confirmed above the ECB's 2% target. For now, policymakers are sticking with the 'transitory' narrative.