According to our primary mandate, our definition of price stability means an inflation rate below but close to 2% over the medium term. This is the needle in our compass. Our medium-term orientation means, figuratively speaking, that we provide the steady hand on the tiller. How can the citizens of the euro area have confidence in the steady course of monetary policy?
They need only look at some facts. Over the 12 years since the launch of EMU, the average annual inflation rate in the euro area has been 1.97%. This is the best result of a major central bank in the euro area over the last 50 years. For Germany, the inflation rate has been even lower than the average since the euro was launched.