FRANKFURT: The European Central Bank's inflation objective is not in contradiction with financial stability goals as long as the bank is sufficiently flexible about the time horizon for reaching the inflation target, Governing Council Klaas Knot said on Thursday.
"The first thing you need to do in this context is use the medium term perspective in monetary policy in a sufficiently flexible fashion," Knot told a conference in Frankfurt.
"In such circumstances, financial stability and price stability are aligned, there is no contradiction, as long as you regard the time horizon... as sufficiently long," said Knot, who also heads the Dutch central bank.
Comments
Comments are closed.