François Villeroy, a member of the European Central Bank and Governor of the Bank of France, emphasized that the European Central Bank will remain flexible and practical regarding interest rate trends in the upcoming period, stressing that future movements will primarily depend on incoming economic data rather than a pre-determined path.
Villeroy, one of the prominent policymakers within the European Central Bank, stated that monetary policy is currently undergoing a positive phase with declining inflationary pressures; however, he noted that this does not imply a commitment to a fixed path or an absence of possibilities for change. He clarified that the European Central Bank does not adopt rigid positions but rather addresses financial and economic conditions with a flexible, practical approach based on market developments.
He added that the future direction of monetary policy will not be based on a set timeline but rather on the evolution of economic indicators, emphasizing that the European Central Bank is closely monitoring inflation and growth movements within the Eurozone. He pointed out that the current phase requires caution and precise decisions that balance supporting economic recovery with ensuring price stability.
Villeroy's statements reflect a balanced stance from within the European Central Bank, as expectations for a gradual reduction in interest rates increase with inflation rates stabilizing closer to the 2% target. Despite the progress made, decision-makers within the bank prefer to avoid issuing explicit signals regarding interest rate movements, opting for an approach based on flexibility in responding to data.
