European Central Bank Inflation Statement

Speaking at the seminar organized by the Center for European Economics and Finance in London, the President of the European Central Bank (ECB), Lagarde, stated that it is very important not only to take decisive measures to reduce inflation, but also to communicate effectively to ensure that Medium-term inflation expectations remain stable throughout the process.

2 PERCENT GOAL

“Now it is important to recognize that, like other central banks, we have underestimated both the dynamics and the persistence of inflation.” Lagarde said, however, that they have made changes to their forecasting processes to address these issues.

Noting that central banks should convincingly convey their messages to the public by using effective communication language, Lagarde said: “It is more important than ever to convincingly convey that inflation will return to our 2 percent target. in the medium term, to help prevent “It is of vital importance” used his statements.

Emphasizing that communication plays a vital role in the art of effective policymaking for banks today, Lagarde said: “This is especially true for central banks like the ECB. But changes in the media landscape, from new technologies to the rising tide of fake news, have made it increasingly difficult for policymakers to reach broader audiences. he made the assessment of it.

ATTENTION TO SOCIAL NETWORKS

Underlining that disinformation is frequently seen on social media platforms, Lagarde said: “It has become increasingly difficult to disseminate factual information. Falsehoods on Twitter, now known as X, have been found to spread 10 to 20 times faster than the truth. he said.

ECB President Christine Lagarde said inflation targeting with relative price changes is essential in a changing world and stressed that central banks need to deliver their messages in clear language that society can understand.

“A study finds that making monetary policy communication simpler and more relatable to people’s lives increases understanding of key messages by 40 percent,” Lagarde said. he said. (AA)