In confirming the quantitative definition of price stability, the Governing Council made it clear that, over the medium term, its monetary policy would seek to achieve an inflation rate “below, but close to, 2%”.11 This takes sufficient account of all the factors in favour of aiming at a low, positive rate of inflation.
2.3  The two pillars of the strategy  In view of the uncertainties mentioned at the beginning of this lecture, the strategy had to provide a sound and systematic framework for internal analysis and decision-making. This framework was also needed as a basis on which to communicate our decisions to the public.