ECB Governing Council member Francois Villeroy de Galhau emphasized that the central bank “has frequently re-affirmed its commitment to symmetry” of its inflation target. As a result, “we might be ready to accept inflation higher than 2% for some time.” Still, “we should examine whether the current formulation casts doubt on this.”

Villeroy also dismissed chatter that it’s running out of ammunition. “If needed, the ECB has ample room for maneuver,” he said. “Have no doubt about our determination to act as much as needed, and about our capacity to act.”

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