European Central Bank officials say that stabilizing inflation expectations is essential; it's still too early to discuss potential interest rate hikes.

European Central Bank governing council member Francois Villeroy de Galhau told the media La Stampa that the central bank is prepared to take action to rein in inflation expectations, but it is still too early to say when potential rate hikes could occur.

Villeroy, who also serves as governor of the Banque de France, said that the Iran war could cause a negative supply shock, leading to slower economic growth and faster increases in consumer prices, and that the latest developments in the conflict “have not brought any encouraging signals.”

In an interview he published on Monday, he said, “The European Central Bank can’t control oil prices, but it does have the ability and the duty to anchor household and corporate inflation expectations to its medium-term target of 2%. If necessary, we are prepared to take action in that direction.”

Some of Villeroy’s colleagues had previously suggested that the central bank could take action as soon as April. The market also expects the tightening cycle to begin shortly, with up to three rate hikes expected this year.

Villeroy reiterated that the ECB’s interest-rate path is not predetermined, but will be data-driven. April will be his last scheduled policy meeting before he leaves the Banque de France.

He said, “Debating a predefined date seems premature. In recent days, financial markets have had some overinterpretation of this.”

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责任编辑：刘明亮