ECB will not be inactive or overreact, ready to act to stabilise inflation, Villeroy says

ECB policymaker Francois Villeroy de Galhau said the ECB will not be inactive or overreact to oil and gas price volatility and is ready to act to stabilise inflation at its 2% target. The comment signals preparedness for policy moves if energy-driven inflation pressures persist, implying potential upward pressure on bond yields and renewed volatility in energy-sensitive assets.

Analysis

ECB policymaker Francois Villeroy de Galhau said the ECB will not be inactive or overreact to oil and gas price volatility and is ready to act to stabilise inflation at its 2% target. The comment signals preparedness for policy moves if energy-driven inflation pressures persist, implying potential upward pressure on bond yields and renewed volatility in energy-sensitive assets.