Justified to keep accommodative monetary policy – ECB’s Villeroy
Member of the European Central Bank (ECB) Governing Council Francois Villeroy de Galhau (pictured) stated on Friday that it was “totally justified” to keep an accommodative monetary policy for now.
Commenting on inflation, Villeroy projected that the mid-point for the ECB’s 2% inflation target will come in around 12 to 18 months. Additionally, on the asset purchases program, he said that the central bank will take a look into it come fall, while he assured businesses that the pandemic emergency purchase program (PEPP) will be kept.
Villeroy’s also echoed that there was a “large majority” that agreed with the policy, as reports emerged that the holdouts were concerned with a lack of clarity and the length of commitment for the ECB to keep the policies.
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