By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Tuesday that there is still insufficient evidence of second-round inflation effects stemming from the energy shock to warrant an interest rate hike.

Villeroy, who heads the Banque de France, told French broadcaster France 5 that “[i]f we see such second-round effects, we’ll act and raise rates to prevent inflation becoming broad and sustainable.”

“For the moment, we don’t have sufficient signs of this propagation,” he added.