NEW YORK (Reuters) - The European Central Bank should not reduce its economic stimulus yet, the chief of France’s central bank said on Wednesday, calling for “pragmatism” in deciding which measures to phase out last.
“It is clear that the current macroeconomic environment does not call for a recalibration,” ECB rate setter Francois Villeroy de Galhau said in New York.
“Our current monetary policy stance remains fully appropriate ... and should not be adjusted before we see more concrete signs that inflation can be sustained at levels closer to our target.”
He added: “Among our combination of various instruments, we should withdraw last the measures that are most needed to secure a sustained adjustment in the path of inflation consistent with our target. We will continue to assess the situation with great pragmatism.”
Reporting By Francesco Canepa; Editing by Toby Chopra