NEW YORK (Reuters) - The European Central Bank needs to clarify the symmetric nature of its inflation target and should do this as part of its upcoming policy review, French central bank Governor Francois Villeroy de Galhau said on Wednesday.
The ECB targets inflation at close to but below 2 percent and recently emphasized this was a symmetric target, so an overshoot would be treated with the same vigour as an undershoot.
“There could be interpretations from ECB watchers saying that you had an implicit ceiling,” Villeroy, who sits on the ECB’s rate-setting Governing Council told a university lecture in New York. “We corrected this bias but perhaps not strongly enough... we have to enhance the symmetry.”
Reporting by Balazs Koranyi; Editing by Chris Reese