Key insights
- ECB's Villeroy signals readiness to act on inflation, leaning towards rate hikes but not ruling out cuts. The ECB will decide on potential rate hikes meeting by meeting. This stance, while focused on Europe, has a slight negative influence on US equities as tighter global monetary policy can indirectly impact US growth prospects.
Investing.com -- The European Central Bank stands prepared to take action to stabilize inflation at its 2% target amid oil and gas price volatility, Bank of France Governor and ECB policymaker Francois Villeroy de Galhau said Friday.
"We have the eyes on the ball and the hands ready to act," Villeroy de Galhau said in an interview with Financial News website Boursorama.
The ECB will decide on potential rate hikes meeting by meeting, he said. A rate increase was likelier than a rate cut, though he did not completely rule out the latter.
The ECB kept its key interest rate at 2% Thursday.
Villeroy de Galhau said the central bank will not be inactive or overreact to the oil and gas price volatility.
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