The medium-term orientation of monetary policy Ever since the announcement of its strategy in 1998 the ECB has made it clear that price stability is to be maintained over the medium term. I emphasised before that it is crucial in monetary policy to look through” short-term volatility in prices, which is typically outside the control of central banks.
The medium-term orientation of the ECB’s monetary policy strategy clarifies that the time horizon over which price stability has to be re-established needs to be tailored to the prevailing circumstances in the economy.