In contrast to decision-making bodies at inflation-targeting central banks, such as the Bank of England’s MPC, the ECB Governing Council exerts no influence on the forecasts and their assumptions. In our two-pillar strategy, forecasts do not represent an all-encompassing tool – as would be the case for pure inflation targeters.
Instead, projections are merely one input factor in the economic analysis, which, together with the monetary analysis, supports the robustness of the Governing Council’s assessment of risks to price stability. Despite these differences in monetary policy strategy, the Eurosystem publishes its projections for inflation and output four times a year.