More precisely, the Governing Council explained that its expectation was based on “the overall subdued outlook for inflation extending into the medium term, given the broad-based weakness of the economy and subdued monetary dynamics”. This conditionality of the guidance ensures full consistency with the ECB’s strategy and mandate and thus ultimately guarantees its credibility.
Note a difference between our approach to verbal communication regarding the conditional path of our instrument and the approach taken by other central banks. Our main motivation was to regain control of the short-term segment of the money market in conditions in which that market was being influenced by expectations and external factors that we considered misaligned with our monetary policy inclinations.