BERLIN (Reuters) – The current formulation of the European Central Bank’s inflation target may be leading to confusion and misunderstandings, Irish central bank chief Gabriel Makhlouf said on Wednesday, making the case for clearer central bank communication.
The ECB, which is currently reviewing its target, aims for inflation “below but close to 2%”, a wording that some have called ambiguous.
“We central banks need to do a better job at communicating and explaining,” Makhlouf said in Berlin. “It seems that there continues to be uncertainty about exactly what ‘close to, but below’ means.”
(Reporting by Michelle Martin and Scot Stevenson; Writing by Balazs Koranyi; Editing by Andrew Heavens)
