ECB Must Not Exclude Any Policy Action, Says Villeroy

The Wall Street JournalFriday, December 5, 2025 at 3:57:00 PM
ECB Must Not Exclude Any Policy Action, Says Villeroy
  • François Villeroy de Galhau, Governor of the Bank of France, stated that financial market participants believe the European Central Bank's (ECB) terminal interest rate is 2%, suggesting that borrowing costs will not decrease further. He emphasized the importance of keeping all policy options open in light of ongoing inflation risks.
  • This development is significant as it reflects the ECB's current stance on monetary policy amid fluctuating inflation rates, which could impact economic growth and borrowing conditions across the Eurozone.
  • The situation highlights a broader concern regarding inflation stability in the Eurozone, with recent data showing inflation rates hovering around 2.2%. This uptick raises questions about the ECB's ability to maintain its target rate and the potential need for policy adjustments in response to persistent price pressures.
— via World Pulse Now AI Editorial System

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ECB’s Villeroy: inflation risks warrant keeping policy options open
NeutralFinancial Markets
ECB Governor François Villeroy has emphasized the need to keep policy options open due to ongoing inflation risks, indicating that the central bank is prepared to respond to changing economic conditions. This statement comes amid fluctuating inflation rates and market adjustments as investors await key economic data.