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ECB can adapt policy faster if high inflation persists - Villeroy

FILE PHOTO: Bank of France Governor Francois Villeroy de Galhau delivers a speech during the annual meeting of Small and Medium-sized Enterprises leaders at the Bank of France in Paris, France, October 22, 2021. REUTERS/Sarah Meyssonnier/File Photo

PARIS (Reuters) - The European Central Bank will adapt its monetary policy more quickly if inflation remains high for longer than expected, ECB policymaker and French central banker Francois Villeroy de Galhau said on Tuesday.

French inflation, which hit a 13-year high in December, is expected to ease progressively in the coming months to below 2% by year-end, Villeroy told a conference at Paris’ Dauphine University.

“If inflation should prove more persistent, have no doubt that we would have the will and capacity to adapt our monetary policy faster to ensure the return towards our 2% objective,” Villeroy said.

Reporting by Leigh Thomas; Editing by Gareth Jones

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