ECB’s Villeroy emphasizes agile pragmatism

French and Finnish ECB officials are urging caution but not complacency as the central bank navigates an increasingly uncertain global environment. Speaking today, François Villeroy de Galhau said growth risks remain “tilted to the downside” and emphasized that “agile pragmatism in light of data and forecasts is of the essence.”

Villeroy also noted that US tariffs—though still not fully defined—are unlikely to spark inflation to rise in the Eurozone. Instead, the recent appreciation of Euro is already exerting a “significant disinflationary effect,” which could aid in anchoring inflation near the ECB’s 2% target.

Separately, Finnish policymaker Olli Rehn echoed the theme of strategic patience, warning that while caution is warranted, the ECB should avoid “waiting in vain.” He stressed the high “option value of waiting.”