European Central Bank should consider 'clearer' inflation target - Schnabel
"We should also think whether we want to formulate this target in a clearer manner. It is foremost about how we can best reach the prime target, which is price stability"
The European Central Bank (ECB) should think about formulating its inflation target more clearly, Isabel Schnabel, the bank's newest board member told a German newspaper in remarks published on Tuesday.
"The (inflation) target worked very well in the past but structural changes in the economy justify a careful discussion," Schnabel told Germany's Sueddeutsche Zeitung daily when asked what she made of the ECB's target of 'below but close to 2%'.
"We should also think whether we want to formulate this target in a clearer manner. It is foremost about how we can best reach the prime target, which is price stability. This is the objective that should guide us."
The ECB is starting a one-year review of its monetary policy strategy this month and plans to take a closer look at its target and the tools it uses to achieve that target.
