Comments by ECB governing council member, Francois Villeroy de Galhau, as he speaks in Paris
- Monetary policy cannot do everything, cannot repair protectionist damage
- It also cannot replace reforms, fiscal policy
- Monetary policy is guided by central bank mandate, not targeting exchange rate
- Says that the ECB is data dependent, not market dependent
- That means not relying too exclusively on market-based inflation expectations
- Will assess economic data at meeting next week
- ECB will act accordingly if and when is needed
If central banks can't perform miracles, then to whom should we pledge our faith to? On a more serious note, he's not giving anything away about any potential stimulus being introduced next week. That will keep markets guessing still for the time being.
