Villeroy, the Governor of the Bank of France, says the European Central Bank is prepared to respond to inflation if necessary

MaticHoleFiller · 2026-04-02T11:52:32+00:00

European Central Bank Governing Council member Villeroy stated that the central bank is prepared to respond to potential inflation triggered by rising energy prices. He mentioned maintaining interest rates unchanged but indicated that action will be taken if necessary to address economic impacts. April will be his last meeting, and he emphasized that the central bank has a responsibility to prevent inflation from spreading.

MaticHoleFiller

2026-04-02 11:52:32

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European Central Bank policy board member Francois Villeroy de Galhau said that if rising energy prices begin to spill over into other areas of the economy, the central bank is prepared to respond to inflation.

Villeroy said on Tuesday, while presenting the French central bank’s annual report in Paris: “On Thursday of last week, we unanimously decided to keep interest rates unchanged, but we are in a good position to take action in the necessary way if and when needed.”

Some policymakers at the European Central Bank have suggested that as higher energy prices pass through to goods and services, the central bank may consider raising borrowing costs as early as next month.

The April meeting will be Villeroy’s last time attending, and he will leave the French central bank in June. He did not make it explicit which direction policy will take next month, but echoed concerns about inflation spreading.

He said: “We are not responsible for oil prices and energy prices, but we have a duty to prevent them from transmitting and triggering second-round effects.”

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