Central Banks

Strong Euro Is Element That Will Guide ECB Policy, Villeroy Says

Francois Villeroy de GalhauPhotographer: Chris J. Ratcliffe/Bloomberg

The European Central Bank is closely watching how an appreciating euro is affecting inflation and will consider the impact when setting monetary policy, according to Governing Council member Francois Villeroy de Galhau.

While reiterating that officials don’t have any target for the exchange rate, the French central banker joined others in warning that further euro strength could weigh on consumer prices.