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ECB will not hesitate to act to bring down inflation, Villeroy says - Finance news and analysis from Global Banking & Finance Review
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ECB will not hesitate to act to bring down inflation, Villeroy says

Published by Global Banking & Finance Review

Posted on May 26, 2026

1 min read

· Last updated: May 26, 2026

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ECB Will Not Hesitate to Act to Bring Down Inflation, Villeroy Reaffirms

ECB’s Commitment to Inflation Control

Villeroy’s Assurance to Households and Businesses

PARIS, May 26 (Reuters) - The European Central Bank will not hesitate to act to bring down inflation, Bank of France ‌Governor Francois Villeroy de Galhau said in an interview with Le Figaro newspaper that was released on Monday evening.

ECB’s Inflation Target

"Households and businesses can trust us to bring inflation back down to 2% in the medium term; we will not hesitate to act to achieve this if necessary," said Villeroy, who is also a member of the ECB's governing council.

Leadership Transition at the Bank of France

Villeroy’s Departure

Villeroy is set to leave his job at the helm of the Bank of France at the end of the month.

Emmanuel Moulin’s Appointment

Background of the New Governor

Emmanuel Moulin, President Emmanuel Macron's former chief of staff, won lawmakers' approval to become the head of the country's central bank from next month.

(Reporting by Inti Landauro; Editing by Jamie Freed)

Key Takeaways

  • Villeroy emphasized the ECB’s readiness to act in order to ensure inflation returns to 2% medium-term, reinforcing confidence among households and firms (bloomberg.com).
  • He stressed the need for sufficient evidence of entrenched inflation—especially in underlying pressures, wages, and expectations—before adjusting policy (investing.com).
  • Villeroy is departing the Banque de France after an 11‑year tenure; Emmanuel Moulin, a long-time Macron ally, has been approved by Parliament to take over next month (lemonde.fr).

References

Frequently Asked Questions

What did Villeroy say about the ECB's response to inflation?
Villeroy stated the European Central Bank would not hesitate to act to bring down inflation, assuring that measures will be taken if necessary to achieve the 2% target.
Who is set to become the next head of the Bank of France?
Emmanuel Moulin, President Emmanuel Macron's former chief of staff, has been approved by lawmakers to head the Bank of France starting next month.
What inflation target has the ECB set for the medium term?
The ECB aims to bring inflation back down to 2% in the medium term.
When will Francois Villeroy de Galhau leave his post?
Francois Villeroy de Galhau is set to leave his role as Governor of the Bank of France at the end of the month.

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