European Central Bank: The primary objective of the European Central Bank’s monetary policy is to maintain price stability. The ECB aims at inflation rates of below, but close to, 2% over the medium term.
To maintain price stability is the primary objective of the Eurosystem and the single monetary policy for which it is responsible. This is laid down in the Treaty of the Functioning of the European Union, Article 127 (1).
“Without prejudice to the objective of price stability”, the Eurosystem will also “support the general economic policies in the Community with a view to contributing to the achievement of the objectives of the Community”. These include a “high level of employment” and “sustainable and non-inflationary growth”.
The Treaty establishes a clear hierarchy of objectives for the Eurosystem. It assigns overriding importance to price stability. The Treaty makes clear that ensuring price stability is the most important contribution that monetary policy can make to achieve a favorable economic environment and a high level of employment.