Therefore, many observers simply take the mid-point of the projection ranges and interpret this figure as the view of the Governing Council. But, in this context, there are two important elements Eurosystem observers should not overlook. First, the projection exercise is carried out by staff members of the Eurosystem. Therefore, the projections do not necessarily reflect the Governing Council’s view or its subjective judgement.
Second, and more importantly, the ECB’s Governing Council does signal its subjective assessment regarding the balance of risk to the staff projections by explicitly giving qualified indications in various ways.