MNI BRIEF: ECB Must Preserve "Full Optionality" - Villeroy

The ECB must preserve "full optionality to act" as needed, Bank of France Governor Francois Villeroy said in a statement on Friday.

Speaking the day after the ECB held its benchmark rate at 2.0%, Villeroy said the current level of rates did not mark a "fixed position." (See MNI SOURCES: ECB In 'Wait And See' Mode, Risks Still Tilt Down)

Villeroy believed "the various risks, including financial market risks" required full policy flexibility. According to the governor, "agile pragmatism based on data and forecasts will be required at our upcoming meetings," as he echoed the ECB governing council's repeated view to act in a "data-dependent" and "meeting-by-meeting" fashion. (See MNI ECB WATCH: ECB Holds Again Amid Narrowing Risks)