ECB's Cipollone: No Specific Exchange Rate Goal, Yet It Influences Inflation Forecasts
ECB’s Cipollone: Exchange Rate Not a Policy Target, But Influences Inflation Forecasts
Piero Cipollone, a member of the European Central Bank’s Executive Board, stated on Sunday that the ECB does not set a specific goal for the euro’s exchange rate. However, he emphasized that currency movements are considered when staff develop inflation forecasts, which play a key role in shaping monetary policy decisions.
“There is no explicit exchange rate target,” Cipollone explained in an interview with the Cyprus News Agency. He noted that the ECB factors in exchange rate trends during its economic projections and will continue to evaluate their effects in upcoming forecast updates. According to Cipollone, the euro’s recent appreciation has mostly brought it back to levels observed in earlier months.
The conversation also touched on the topic of the digital euro, with Cipollone highlighting its significance for the future of European finance.
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