ECB’s Visco says bank needs symmetrical inflation target, more transparency: newspaper By Reuters

ECB's Visco says bank needs symmetrical inflation target, more transparency:


© Reuters. FILE PHOTO: Ignazio Visco, governor of Bank of Italy, speaks during an event to launch the private finance agenda for the 2020 United Nations Climate Change Conference (COP26) at Guildhall in London

MILAN (Reuters) – Board member Ignazio Visco said the European Central Bank should set a clearer inflation target and should attribute the opinions published in its minutes to the relevant policymakers for greater transparency.

Visco, who is governor of the Bank of Italy, told daily newspaper Il Corriere della Sera that the ECB’s current target of inflation below but close to 2% in the medium term was “vague and difficult to understand”.

“I think the target must be symmetrical,” he said in an interview published on Sunday.

“Levels of one percent or 1.5% are too low as we need flexibility margins to face crisis,” he said.

Visco said the ECB was studying a recent shift in U.S. central bank strategy which puts more focus on bolstering the labour market and less on lowering inflation.

“We are discussing ourselves on how to review our monetary policy strategy,” he said.

Visco also said the ECB should provide more clarity on its intentions and that opinions reported in its policy meeting minutes, now anonymous, might be explicitly attributed to those policymakers who expressed them.

“People need to know what each of us thinks and how we express it in the Council meetings,” he said, adding in was not positive that monetary policy decisions were followed by press releases by some national central banks or statement by policymakers.

September policy meeting minutes showed that the ECB might be more concerned about the epidemic-hit economy than analysts had previously thought, suggesting it could roll out more stimulus later this year.

“Monetary policy must remain expansive and be so for a long time,” he said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME