ECB Governing Council member Francois Villeroy de Galhau spoke about the current monetary policy outlook in an interview with France Inter radio on Saturday. Emphasizing the need for a patient approach, Villeroy stated, “From today’s perspective, patience is more important than raising rates further.”
He highlighted the current deposit rate, which stands at a record 4%. According to Villeroy, this level should be held steady as it plays a crucial role in controlling inflation within Eurozone.
Amid concerns over the potential inflationary impact of rising oil prices on the global economy, Villeroy remained steadfast in the ECB’s commitment to its objectives.
“The recent increase in oil prices won’t derail the European Central Bank’s fight to tame inflation,” he asserted. Elaborating further on this, he said, “We’re very attentive, but [this] doesn’t put into doubt the underlying disinflation.”
Villeroy reiterated ECB’s target: “Our outlook and engagement is to bring inflation to around 2% in 2025.”
