According to that definition, price stability obtains if it is ensured over the medium term that the year-on-year rise in the harmonized consumer price index (HCPI) for the euro area is less than 2%. To realize the objective of price stability, a monetary policy strategy which rests on two pillars was devised.
In the first place, the Governing Council announced a reference value for the growth of the money stock M3; secondly, a broad range of leading economic indicators is constantly being analyzed in order to assess the prospects for price movements and the risks to price stability.