It must be maintained in the medium-term.” Such a definition offers a stable anchoring point for the expectations of economic agents in an uncertain environment. It also offers the public a means to evaluate monetary policy, thus enhancing the transparency of the European Central Bank and enabling it to be called to account for its performance.
The expression “of less than 2 p.c.” specifies the maximum limit for the pace of inflation that is considered compatible with price stability. At the same time, the word “rise” clearly indicates that deflation must be avoided in the same way as inflation.