Bank of France head and ECB governing council member François Villeroy de Galhau said on Wednesday that the ECB will gradually adjust its monetary policy to firmly ensure that inflation recedes soon and stabilises around 2.0% in the medium-term. Villeroy added that this gradual and sequential approach to monetary stimulus withdrawal, starting with tapering, then rate lift-off, then eventually downsizing, is appropriate. We keep full optionality about the speed of this sequence, he added, saying that the ECB will be data-driven. 

Market Reaction

The euro has not reacted to Villeroy's latest remarks, which did not reveal anything new on ECB policy.