ECB Governing Council Villeroy said that given the downside risk of inflation, the ECB will remain flexible about future interest rate trends. “There are two-way risks to inflation, but the downside risks are particularly prominent. Therefore, we will maintain the necessary flexibility at every upcoming meeting,” Villeroy told Le Figaro. He pointed out the weakening of the US dollar against the euro and added that although the ECB has no exchange rate target, the ECB will adjust monetary policy if necessary to cope with the strengthening of the euro.

ECB Governing Council Villeroy said that given the downside risk of inflation, the ECB will remain flexible about future interest rate trends. “There are two-way risks to inflation, but the downside risks are particularly prominent. Therefore, we will maintain the necessary flexibility at every upcoming meeting,” Villeroy told Le Figaro. He pointed out the weakening of the US dollar against the euro and added that although the ECB has no exchange rate target, the ECB will adjust monetary policy if necessary to cope with the strengthening of the euro.