ECB Sees No 2nd-Round Inflation From Energy Spike Yet, Villeroy Warns on Expectations
Updated
Updated · Bloomberg · May 25
ECB Sees No 2nd-Round Inflation From Energy Spike Yet, Villeroy Warns on Expectations
3 articles · Updated · Bloomberg · May 25
Francois Villeroy de Galhau said the ECB has not yet seen higher energy costs spill into broader euro-area prices, signaling no detected second-round inflation effects for now.
2% inflation remains the ECB’s medium-term target, and Villeroy said policymakers are watching closely for any rise in household and business inflation expectations.
The outgoing Governing Council member told Le Figaro the central bank would not hesitate to act if needed, framing the current message as reassurance paired with readiness to tighten policy.
Amidst rising stagflation risks, is the ECB’s 'wait-and-see' approach risking a much deeper economic crisis?
If rate hikes can't fix supply shocks, what fiscal tools are being deployed to shield the Eurozone's economy?