ROMA (ITALPRESS) – “The ECB uses all the tools available to try to keep inflation at a stable level at 2% in the medium term.” Piero Cipollone of the Board of Directors of the European Central Bank, explained the mission of the ECB, during the interview held this morning, on the occasion of the Ventotene Europa Festival, in the council hall of the municipality of the Pontine island. “It seems a marginal thing but it is not because maintaining price stability and having certainty of evolution means allowing people and families to plan for time and foresight the real choices.”.
Cipollone, in connection with Frankfurt, dialogue with Roberto Sommella, president of La Nuova Europa, explained that in order to fight inflation the ECB undertakes to “convince everyone that inflation will return to 2%”, this, “is called anchorage of inflation expectations”. So the goal is to “convince people who in a year and a half or two will return to 2%. This is important because so those who go to negotiate wages and a rental contract will use that as a reference parameter in their choices.” Cipollone also explained that the anchoring takes place “through communication and concrete acts such as increasing interest rates. The more the ECB is able to guide expectations, the less intense the use of interest rates. We are aware that it is not a good thing to slow down the growth of the economy,” he continued, but “it is necessary to carefully calibrate the use of instruments.”.
Cipollone clarified: “The short-term expectations have already risen much, especially those of consumers. The ones that are important to us are the middle-term ones that have been anchored. The short-term ones have risen because consumers are very sensitive to energy expenditure and foodstuffs which suffer from a shock on the side of energy prices. If this state of uncertainty should remain, it is possible to see an increase also for those in the medium term and is an element on which we are reasoning. People remember what happened four years ago with the conflict in Ukraine.” This is the reason, according to the member of the EC Board of Directors, of the immediate reaction by the people, following the conflict in Iran.
– photo xl5/Italpress –
(ITALPRESS).
