European Central Bank (ECB) Governing Council member and Bank of France head Francois Villeroy de Galhau said on Monday, “central banks’ core mandate worldwide is price stability and climate change already affects the level of prices and activity.”

The ECB is set to announce its policy decision next week and markets are expecting the central bank to raise rates by a quarter point, with the possibility of a 50 bps hike. Eurozone inflation and growth data are due this week.

Market reaction

At the time of writing, EUR/USD is trading 1.0991, up 0.06% on the day.