Banking
ECB to keep monetary options open – Villeroy
Published by maria gbaf
Posted on December 20, 2021
1 min readLast updated: January 28, 2026
Quick Summary
The ECB plans to maintain flexibility in its monetary policy, focusing on 'optionality' to adapt to COVID and supply-chain challenges, says Villeroy.
ECB to Maintain Flexibility in Monetary Policy, Villeroy States
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)
Key Takeaways
- •ECB to prioritize 'optionality' in monetary policy.
- •Flexibility needed due to COVID variants and supply-chain issues.
- •Emergency bond buys to end in March.
- •APP pace to double temporarily for transition.
- •Villeroy emphasizes data-driven policy adjustments.
Frequently Asked Questions about ECB to keep monetary options open – Villeroy
1What is the main topic?
The main topic is the ECB's approach to maintaining flexibility in its monetary policy amid ongoing economic uncertainties.
2Why is 'optionality' important for the ECB?
Optionally allows the ECB to adjust its monetary policy based on real-time data, crucial during uncertain periods like the COVID pandemic.
3What changes are happening with the ECB's bond-buying programs?
The ECB will end emergency bond buys in March and temporarily increase the pace of its Asset Purchase Programme to ease the transition.
