First, the fact that we have a clear and simple framework is golden. We have a clear target—2 percent inflation—which means businesses and families know what we aim to achieve with our actions. We know that central banks must be transparent, especially in times of crisis.
Our inflation target of 2 percent is defined in terms of the annual consumer price index (CPI) inflation rate, so it’s simple to see if we’ve done our job well or not. Second, our framework is flexible in terms of how fast we aim to return inflation to target.