ECB’s Villeroy: encouraged by inflation data, says current interest rate level is appropriate

PARIS (Reuters) – Francois Villeroy de Galhau, governor of the Bank of France and member of the European Central Bank (ECB), said on Friday that he was encouraged by latest inflation data, which showed that the current level of key ECB interest rates was appropriate.

Data released earlier on Friday morning showed that French inflation had slowed unexpectedly in September.

“This morning’s data demonstrates that both headline and core inflation are declining progressively across Europe, underlining that the ECB’s monetary policy is effective,” said Villeroy, in a post on Linkedin.

“These data strengthen our confidence that inflation in the euro area and in France will return towards its target of 2% by 2025, which confirms that the current level of our key interest rates is appropriate. Recent volatility in the market for long bonds has been somewhat excessive,” added Villeroy.

(Reporting by Sudip Kar-Gupta and Leigh Thomas; Editing by GV De Clercq)