By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Monday that there were no signs of second-round effects yet, but the ECB would remain very watchful and act without delay if needed.

In an interview with French daily Le Figaro, Villeroy, who heads the Banque de France, said that “[s]o far, we have not yet seen this spillover effect, but we are extremely vigilant regarding the risk of rising inflation expectations.”

Firms and consumers could trust the ECB to bring inflation back to target over the medium term, he said, adding that “we won’t hesitate to take action to achieve this if necessary.”

Related articles:

• ECB’s Villeroy: Tightening of Financial Conditions Already Impacting Inflation
• ECB’s Villeroy: “Must Be Ready to Intervene to Prevent Second-Round Effects”