ECB’s Villeroy: Inflation forecast justifies keeping loose policy

Dhwani Mehta FXStreet

The European Central Bank (ECB) Governing Council member and Bank of France Head Francois Villeroy de Galhau said the inflation forecast justifies keeping loose central bank’s policy.

“There is no doubt that inflation will be below 2% target in 2023,” he added.

In her appearance on Monday, ECB President Christine Lagarde left doors open for higher inflation while adding that there is "every reason to believe" that the rebound in energy prices and supply bottlenecks would ease next year.

Market reaction

EUR/USD hovers near five-week lows of 1.1673, down 0.11% on the day. Firmer yields and energy crises undermine the euro vs. the greenback.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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