French ECB Governing Council member Francois Villeroy de Galhau said in a conference today that ECB is now in a favorable “2 and 2 zone. That means, inflation is forecast at 2% this year, while deposit rate is also at 2%.
Nevertheless, he warned that with current uncertainties, this zone “does not mean a comfortable zone or a static zone”. “We will remain pragmatic and data-driven, and as agile as necessary,” Villeroy added.
Separately, Finnish ECB policymaker Olli Rehn warned that as inflation is projected to stay below 2% this year, the central must be mind of “not slipping towards the zero lower bound.”
“We must not grow overconfident — instead we must stay vigilant and monitor the risks in both directions,” Rehn said. “The ECB team must remain alert and ready to act with agility as and if needed.”
![Pinterest](https://pinterest.com/pin/create/button/?url=https://www.actionforex.com/live-comments/600280-ecbs-villeroy-favorable-2-and-2-zone-is-not-static/&media=https://www.actionforex.com/wp-content/uploads/2018/04/f-ecb13.jpg&description=French ECB Governing Council member Francois Villeroy de Galhau said in a conference today that ECB is now in a favorable "2 and 2 zone. That means, inflation is forecast at 2% this year, while deposit rate is also at 2%.){kind=link}