ECB’s Villeroy Says If Policy Needs to Change, Loosening More Likely

The European Central Bank is more likely to further loosen policy if it makes a move in the coming months, as it seeks to remain agile after returning inflation to target, Governing Council member Francois Villeroy de Galhau said.

“Barring a major exogenous shock, including possible new military developments in the Middle East, if monetary policy were to move in the next six months, it would be more in the direction of accommodation,” the French central banker said in a speech at the European University Institute in Florence.