We should not plan to increase interest rates until we have seen a sustainable evolution in inflation, says Bank of France Governor Francois Villeroy de Galhau.
• Underlying inflation dynamics not yet solid enough to durably support prices
• Core inflation has risen but remains at modest levels despite firming economic & labour recovery
• No doubts economic recovery & job creation will push wages higher, but questions remain on pace
• We are confident in the effectiveness of our monetary policy & are prepared to be patient about how long it lasts
• We must reduce the rate of our net asset purchases while keeping our overall monetary policy significantly accommodative
• Studies show we can continue to put downward pressure on the yield curve while keeping stock of assets high
• We continue to monitor exchange rates closely due to possible implications on inflation over the medium-term
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