ECB Doesn’t See Enough Yet to Warrant Rate Hike, Villeroy Says

The European Central Bank doesn’t yet see enough impact on inflation from rising oil prices to prompt an increase in interest rates, outgoing Governing Council member Francois Villeroy de Galhau said.

“If we see such second-round effects, we’ll act and raise rates to prevent inflation becoming broad and sustainable,” he told France 5 television on Tuesday. “For the moment, we don’t have sufficient signs of this propagation.”