ECB's Villeroy: We need to keep cool heads about inflation

Eren Sengezer FXStreet

European Central Bank (ECB) Governing Council member and Bank of France Head Francois Villeroy de Galhau said on Tuesday that they need to "keep cool heads" about inflation and added most of the 2021 surge is temporary, per Reuters.

"We won't pretend to know today what inflation will be to the decimal in 2023," Villeroy added. "But the risk remains that we fall short of our inflation target rather than exceed it."

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen losing 0.16% on a daily basis at 1.1603.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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