ECB’s Villeroy: High Uncertainty Calls for Monetary Accommodation

19 January 2021

By David Barwick – FRANKFURT (Econostream) – The uncertain atmosphere requires ongoing policy support and in particular easy monetary policy, European Central Bank Governing Council member François Villeroy de Galhau said Tuesday.

In a speech aimed at the French financial sector, Villeroy, who heads the Bank of France, said that ‘2021 should see, after still difficult first months, the end of the pandemic and the beginning of reconstruction.’

The resilience of banks during the crisis triggered by the pandemic ‘is also the result of the fact that banks and insurance companies entered the crisis with a solid financial position’, he said.

However, he added, even ‘if there is no concern today for their financial solidity, we will have to remain vigilant: uncertainties remain high and call for the extension of budgetary support measures and an accommodating monetary policy.’