20/ Informal meeting of the Governing Council on 5 & 6 October 2022


Blog post by Gaston Reinesch, Governor of the BCL

Last week, the ECB Governing Council had an informal exchange of views on how to reach its price stability objective by ensuring that inflation returns to its symmetric 2% medium-term target.

At this informal get-together – scheduled to inspire an in-depth exchange of views, rather than making decisions – the Governing Council discussed the merits of its instruments, including interest rate increases and downward balance sheet adjustments.

The use of the tools will need to be proportionate and effective in view of reaching the ECB’s mandate.

The Governing Council was unanimous in its assessment that in the current environment further interest rate increases are required. Future policy rate decisions will continue to follow a meeting-by-meeting approach.

The pace and schedule of the balance sheet reduction, which will be data-dependent, will be determined in due course and with a view to delivering on the price stability mandate.