ECB 'will do what is necessary' to tame inflation, Bank of France governor tells CNBC
The Bank of France Governor emphasized the European Central Bank's commitment to controlling inflation amid rising energy prices due to the Iran conflict. He assured markets that the ECB would take necessary actions to bring inflation back to its target of 2%. The recent spike in inflation in the eurozone has raised concerns about potential economic impacts from energy shocks.
- ▪The ECB is committed to keeping inflation on target, according to Bank of France Governor Francois Villeroy de Galhau.
- ▪Eurozone inflation rose to 3% in April, up from 2.6% in March, following the onset of the Middle East conflict.
- ▪Villeroy de Galhau highlighted the risks of inflation in financial markets, particularly in government bonds.
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The European Central Bank "will do what is necessary" to keep inflation on target, one of its top policymakers has told CNBC.Speaking to CNBC's Lisa Kim in Singapore on Tuesday, Bank of France Governor Francois Villeroy de Galhau sought to reassure sovereign debt markets that central bankers in Europe were committed to minimizing the impact of the Iran war.Spiking oil prices, a result of the effective closure of the Strait of Hormuz, have fueled concerns that an energy crisis could lead to a resurgence of inflation in various markets.Villeroy de Galhau, who is a member of the ECB's Governing Council, added that European policymakers "will do what is necessary as an independent central bank to bring inflation back to target.""If I speak on behalf of the ECB, this means do what is necessary…
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