ECB’s Villeroy: No Doubt Monetary Policy Will Stay Very Accommodative for a Long Time

18 May 2021

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Tuesday categorically rejected the possibility of inflation returning to the Eurozone and predicted sustained accommodative monetary policy.

In an online conversation, Villeroy, who heads the Bank of France, said, ‘There is not today any risk of a durable return of inflation in the Eurozone and thus there is no doubt that the monetary policy of the ECB will remain very accommodative for a long time.’

Europe is ‘in a different situation, including the economic cycle, which is more advanced in the United States’, he said.

Villeroy noted a ‘tendency to revise upwards prospects for growth’, and estimated ‘with a good degree of confidence’ that the French economy would expand by ‘at least’ 5.5% this year and 4% next year.