Published by Global Banking & Finance Review®
Posted on October 31, 2025
1 min readLast updated: January 21, 2026
Add as preferred source on GoogleECB must maintain flexibility in interest rate decisions to address financial market risks, according to policymaker Francois Villeroy de Galhau.
PARIS (Reuters) -The European Central Bank must keep its options open for interest rate moves at upcoming meetings to react to risks, including from financial markets, ECB policymaker Francois Villeroy de Galhau said on Friday.
The ECB kept interest rates unchanged at 2% for the third meeting in a row on Thursday, which Villeroy described as a good, if not fixed position.
"In view of the various risks, including those arising from the financial markets, we must maintain full optionality to act as necessary," Villeroy, who is also head of the French central bank, said in a statement.
"More than ever, agile pragmatism based on data and forecasts will be required at our next meetings," he added.
(Reporting by Leigh Thomas; Editing by Benoit Van Overstraeten)
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone, aiming to maintain price stability.
Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates to achieve macroeconomic goals such as controlling inflation.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal amount.
Agile decision-making in finance involves making quick, data-driven decisions that can adapt to rapidly changing market conditions.
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