French ECB Governing Council member Francois Villeroy de Galhau further easing could be on the table if inflation continues to drift below target.
“Barring a major exogenous shock, including possible new military developments in the Middle East, if monetary policy were to move in the next six months, it could be more in the direction of accommodation,” Villeroy said in a speech.
He highlighted that investors are increasingly concerned inflation could settle below ECB’s 2% target, not above it.
