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ECB engaged in bringing down inflation to 2% in two to three years from now – Villeroy
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PARIS (Reuters) -The European Central Bank (ECB) is engaged in bringing down inflation to 2% percent in “two to three years” from now, ECB member and Bank of France head Francois Villeroy de Galhau told France Culture radio on Monday.
PARIS (Reuters) -The European Central Bank (ECB) is engaged in bringing down inflation to 2% percent in “two to three years” from now, ECB member and Bank of France head Francois Villeroy de Galhau told France Culture radio on Monday.
He reiterated that “close to 2%” was still the right target monetary policymakers at the ECB and elsewhere should pursue, adding the eurozone was “still far from it.”
Eurozone inflation accelerated to 10% last month.
“It is a very strong signal the central bank sends to all economic players that we will bring down inflation to the target”, Villeroy said, adding that monetary policy measures will take two to three years to take full effect.
(Reporting by Tassilo Hummel;Editing by Sudip Kar-Gupta and Toby Chopra)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation to maintain a stable economy.
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone, aiming to maintain price stability and control inflation.
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation and fostering economic growth.
The target inflation rate is the level of inflation that a central bank aims to achieve and maintain, often set at around 2% to ensure price stability and economic growth.
The eurozone is a group of European Union countries that have adopted the euro as their official currency, allowing for easier trade and economic stability among member states.
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