In the case of the ECB, the medium-term orientation of our two-pillar monetary policy strategy calls on us to consider the implications that financial imbalances and asset price misalignments and their unwinding have as regards the outlook for price developments at longer horizons.
Given that our mandate requires the maintenance of price stability on an ongoing and continuous basis, rather than at any specific arbitrary horizon, we consider it important to monitor the slow accumulation of unsustainable financial imbalances which pose a threat to macroeconomic and price stability over the longer term.