Critics citing this hypothetical mistake have also highlighted the large errors in the inflation projections made by the ECB/Eurosystem staff in 2022 (fig. 7). The forecast errors in predicting consumer price changes over the last year were indeed sizeable and much larger than those observed in the past.
Our approach is to flag deficiencies in this area to the senior management or to the Board of Directors of individual institutions for remedial action. We also remain engaged with external auditors and flag issues that are relevant for their role as the third line of defence.