ECB's Cipollone
ECB's Cipollone
  • The pace and extent of reduction will depend on data
  • Developments remain consistent with a consumption-led recovery
  • Whether the recovery will firm up remains to be confirmed
  • We should not be more restrictive than what is necessary to ensure timely convergence of inflation to target
  • It could be self-defeating to tolerate an economy running persistently below potential as an insurance against possible future inflationary shocks