ECB’s Villeroy: ‘Need to Continue with the Gradual Normalisation of Monetary Policy’

22 March 2022

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Tuesday said that monetary policy had to continue the process of gradual normalisation.

In a speech for a conference in London published on the website of Banque de France, which he heads, Villeroy cautioned that ‘Russia's war is likely to slow growth and keep inflation higher for longer’

‘On the ECB side, we need to continue with the gradual normalisation of monetary policy in order to keep inflation expectations anchored - it is indeed time to take the foot off the inflation accelerator, as we decided at our last Governing Council’, he said. ‘That said, we should not overreact to short-term volatility in energy prices; rather, we should focus more on core inflation and the medium term.’