Banking
ECB to Keep Monetary Options Open – Villeroy
Published by maria gbaf
Posted on December 20, 2021
1 min readLast updated: January 28, 2026
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Published by maria gbaf
Posted on December 20, 2021
1 min readLast updated: January 28, 2026
Add as preferred source on GoogleThe ECB plans to maintain flexibility in its monetary policy, focusing on 'optionality' to adapt to COVID and supply-chain challenges, says Villeroy.
PARIS (Reuters) – The ECB will prize maintaining “optionality” in its monetary policy going forward, ECB policymaker and French central bank head Francois Villeroy de Galhau said in an interview with financial daily Les Echos published on Sunday.
Leaving policymakers plenty of flexibility in the face of risks from new COVID variants and supply-chain pressures, the ECB said on Thursday it would end emergency bond buys next March but temporarily double the pace of its longer-running Asset Purchase Programme (APP) to ease the transition.
“The most-used word in our discussions (on Thursday) was ‘optionality’. This is the capacity, in this uncertain period, to adjust our monetary policy at any time depending on real data as observed,” Villeroy said.
(Reporting by Leigh Thomas; editing by GV De Clercq and Jason Neely)
The main topic is the ECB's approach to maintaining flexibility in its monetary policy amid ongoing economic uncertainties.
Optionally allows the ECB to adjust its monetary policy based on real-time data, crucial during uncertain periods like the COVID pandemic.
The ECB will end emergency bond buys in March and temporarily increase the pace of its Asset Purchase Programme to ease the transition.
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