Inflation targeting is global best practice in monetary policy because it is transparent while also recognising that there is no long-run, or even medium-run, trade-off between inflation and growth. Instead, in the long run, price stability is a precondition for significant sustainable growth.
Of course, our talks also focused on the economic consequences of the war and the changes to the inflation environment. At the beginning of this week, for example, the European Commission downgraded its forecast for euro area economic growth this year to 2.7%; this figure stood at 4% in the February projections published shortly before the war broke out.