Economics
Villeroy Says ECB Likely Has to Do More to Boost Inflation
- ECB will be flexible, innovative, French central banker says
- Criticizing ECB mandate and its independence is dangerous
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The European Central Bank will probably have to add monetary stimulus to raise inflation, Governing Council member Francois Villeroy de Galhau said as he defended the institution’s independence the day after Germany’s highest court expressed concerns about its policy.
Speaking to the finance committee of the French National Assembly, Villeroy said the ECB will be as “flexible” and “innovative” as necessary with its various measures, including asset purchases and record-low rates, in order to bring price growth in line with its goal of just under 2% and ensure that there aren’t “unjustified rate increases” in some countries.