By Marta Vilar – MADRID (Econostream) – Banque de France Governor nominee Emmanuel Moulin said on Wednesday that it was too early to know what position he would take at the June meeting of the European Central Bank's Governing Council.

Speaking before the French Senate’s finance committee, Moulin, previously chief of staff at the Élysée, said he was “convinced that I can run in an independent manner an institution proud of its history and looking to the future, in the service of a trusted currency and of a strong and stable economy.”

He said the data suggested inflation was starting to spread, adding that it was important to monitor inflation expectations.

“It’s essential that, without prejudice to its price stability mandate, the ECB be able to take into account the impact of its decisions on growth in an increasingly volatile environment,” he said.

Regarding his position ahead of the Governing Council’s June 11 meeting, Moulin said he could not yet say what decision he would support, as this would depend on the data.

Policymakers would need to watch underlying inflation particularly closely, he said, with any evidence of inflation expectations drifting away from target likely to be especially important.

Wage developments would be another crucial trend for the ECB to monitor, he said.

“If the ⁠shock ​is persistent and large-scale, we will clearly need to react,” he said. “If it is large-scale but not persistent, perhaps moderate action will be necessary if the shock is merely transitory.”