ECB Must Anchor Inflation Expectations, Villeroy Tells La Stampa

The European Central Bank is prepared to act to rein in inflation expectations, though betting on dates for potential interest-rate hikes is premature, Governing Council member Francois Villeroy de Galhau told La Stampa.

The Iran war can inflict a negative supply shock, incurring slower economic growth and faster increases in consumer prices, the Bank of France chief said, adding that the latest news on the conflict “does not bring favorable signals.”