European Central Bank Governing Council member Francois Villeroy de Galhau stated that the central bank has not observed oil price increases exerting enough inflationary pressure to justify raising interest rates.
"If we witness such second-round effects, we will act and increase rates to prevent inflation from becoming widespread and persistent," he told France 5 television on Tuesday. "Currently, we do not see sufficient signs indicating this transmission is occurring."
Villeroy will not attend the next policy meeting after announcing his retirement effective at the end of May. His term was originally scheduled to conclude next year.
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