Published by Global Banking & Finance Review®
Posted on March 5, 2026
1 min readLast updated: April 2, 2026
Add as preferred source on GoogleECB policymaker Francois Villeroy de Galhau sees no immediate need to hike interest rates, despite Middle East tensions; he emphasizes financial stability remains sound and decisions will remain data‑driven on a meeting‑by‑meeting basis.
PARIS, March 5 (Reuters) - Bank of France Governor and European Central Bank policy maker Francois Villeroy de Galhau said on Thursday that he saw no reason for the ECB to raise its interests rates, despite the on-going conflict in the Middle-East, and that financial stability is currently not at risk.
"I don't see any reason today why we at the ECB should raise our interest rates. We'll see meeting after meeting, but today I don't see any reason," he said in an interview with French radio station France Inter.
He added that the conflict may have upward effect on inflation and downward effect on growth, but that the proportion will depend on the duration of the situation.
(Reporting by Inti Landauro, Editing by Charlotte Van Campenhout)
Villeroy believes financial stability is currently not at risk and sees no immediate cause to raise ECB interest rates.
Villeroy noted the conflict may cause inflation to rise and economic growth to slow, depending on its duration.
ECB will review interest rates meeting by meeting and make decisions based on evolving economic conditions.
Francois Villeroy de Galhau, Bank of France Governor and ECB policymaker, gave the statement.
No, Villeroy stated that financial stability is not currently at risk.
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