Recently, calls to adapt our inflation objective have been made more frequently, especially in the light of rising inflation rates. However, growth is still fragile and the inflation path still not sustainable, particularly in view of domestic price pressures. In this context, how much longer can we continue to talk about even lower rates as being an option?
Considering the importance of credibility for a central bank, we should not delay in making necessary adjustments to our language and actions. And yet, we should not be hasty. The fragility of the recovery calls for great caution. Low interest rates and an accommodative policy remain appropriate in the current context. Adapting to new circumstances takes time.