BERLIN (Reuters) - The European Central Bank 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.
Reporting by Joseph Nasr and Thomas Seythal; Editing by Balazs Koranyi