ECB not hurrying to increase rates, says head of French central bank

ECB Maintains Cautious Approach to Interest Rate Hikes

François Villeroy de Galhau, the governor of the Bank of France and a member of the European Central Bank's governing council, emphasized that the ECB is not rushing to increase interest rates, even as energy prices climb due to the conflict in Iran. Speaking at the Semafor World Economy event in Washington, DC, he stated, "We will not hesitate to act if the situation requires it, but there is no urgency." He also clarified that there is no set timeline for any potential rate changes, noting that speculation about April is premature.

Villeroy de Galhau explained that the central bank needs to gather substantial data before making any decisions. In particular, the ECB is closely monitoring how the energy price shock is affecting both core inflation and the broader economy.