Villeroy Says ECB’s Policy Guide Is Economic Data, Not Markets
Villeroy Says ECB’s Policy Guide Is Economic Data, Not Markets
(Bloomberg) -- The European Central Bank will act at coming meetings “if and when needed’’ based on data, not market expectations, Governing Council member Francois Villeroy de Galhau said.
“We take account of market indications, but we must not be market dependent,’’ Villeroy said at a Bank of France conference in Paris on Tuesday. “In our next Governing Council meetings, we will assess real economic data and we will act accordingly if and when needed.”
Villeroy also said monetary policy is limited as it cannot repair the damage from protectionism, or replace structural reforms or more selective fiscal policies. That’s been a repeated refrain from central bankers recently, as they look to governments to do more of the heavy lifting in the next downturn.
“Monetary policies cannot do everything and cannot perform miracles,” Villeroy says.
Villeroy, who is Bank of France governor, said the Global Financial Safety Net -- based on IMF capacity, central bank swaps and regional financing agreements -- was “still imperfect in coverage and of insufficient size.”
To contact the reporter on this story: William Horobin in Paris at whorobin@bloomberg.net
To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Catherine Bosley
©2019 Bloomberg L.P.