Turning to euro area price developments, the headline rate of inflation has been above two per cent since the start of the year and is expected to remain above that level into 2007.
These remarks reflect my own current thinking on the matter, which may evolve as the Governing Council reviews the Eurosystem’s operational framework – a process we hope to conclude before the end of the year. From corridor to floor: the role of excess reserves Before 2008, the ECB, and most other major central banks, implemented monetary policy in a “corridor” system.