ECB's Constancio: Changing inflation target would damage credibility

ECB VP Vitor Constancio speaking in Chicago

  • Apparent difficulties to reach higher levels of inflation and real equilibrium interest rates may hamper the capacity of mon pol to deal with future recessions

  • Changing the inflation target risk at a time when outcomes have been below the current objective for a number of years risks damaging central bank credibility

  • Long term consequences of low but positive inflation and negative rates would become too severe for the financial sector, pensioners and savers

I still want to know how long is too long, for keeping rates low?

Anyway, there's far too much CB waffle going on for a Friday afternoon.

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