ECB’s Villeroy stresses need for flexibility on rates amid market risks

Published 31/10/2025, 13:32
ECB’s Villeroy stresses need for flexibility on rates amid market risks

Investing.com -- European Central Bank policymaker Francois Villeroy de Galhau emphasized on Friday that the ECB must maintain flexibility regarding future interest rate decisions to address various risks, including those from financial markets.

Villeroy described the Governing Council’s Thursday decision as "a good position" but clarified it "is of course not a fixed one." The French central banker stressed the importance of maintaining "full optionality to act as necessary" given the uncertain economic environment.

Looking ahead to upcoming ECB meetings, Villeroy indicated that "more than ever, agile pragmatism based on data and forecasts will be required," suggesting the central bank will remain responsive to changing economic conditions rather than committing to a predetermined policy path.

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