Therefore, as is made clear in the ECB’s monetary policy strategy, monetary policy decisions cannot be made only on the basis of a central inflation forecast. Rather, it is the comprehensive analysis of the monetary and macroeconomic situation and of the economic disturbances affecting the euro area economy which is the relevant input to forward-looking policy decisions.
The ECB’s approach to communication has always placed a premium on honesty. To continue in this vein, it is my view that we must publish forecasts in a manner which accurately reflects their limited role in policy decisions and the uncertainties inherent in them. Any other approach would not be transparent and would therefore be potentially misleading.