MNI BRIEF: ECB Villeroy: Growth Risks Remain To Downside

Risks to euro area growth remain to the downside and the ECB must remain completely open as to its future policy decisions, Bank of France Governor Francois Villeroy has said in a statement Friday. 

Despite the decision to keep rates unchanged at Thursday's Governing Council meeting, Villeroy also noted that inflation and wages remained under control. (see MNI ECB WATCH: ECB Holds, Keeps Meeting-By-Meeting Approach )

"Inflation -- and relatedly wages -- remains well under control: it is at our 2% target in the euro area and stands lower at 0.9% in France. The increases in US tariffs, the extent of which is still uncertain, are not expected to cause inflation to rise, while the appreciation of the euro is having a significant disinflationary effect," Villeroy said. "Agile pragmatism" when it comes to policy decisions is "of the essence" in the current volatile environment, he added.