ECB's Governing Council Member Visco on EU Inflation

The transcript discusses concerns about inflation, particularly in relation to energy prices and their impact on the economy. It explores the role of monetary policy and interest rate adjustments in managing inflation. The discussion includes the effects of core inflation and labor market conditions, emphasizing the importance of data dependency in economic decisions. The transcript also addresses the concept of terminal rates and real interest rates, highlighting the need for realistic economic policies to achieve a 2% inflation target in the medium term.

Why is it important for monetary policy to be data dependent?

What is the target inflation rate mentioned in the text, and why is it significant?