MNI (BRUSSELS) - The ECB should continue to reduce the restrictiveness of its monetary policy, Bank of France Governor Francois Villeroy says in a statement published Friday. (see MNI ECB WATCH: ECB Cuts 25, Keeps Meeting-By-Meeting Approach )

"The direction is in my view clear - we should continue to reduce in an appropriate way the restrictive stance of our monetary policy." (see MNI INTERVIEW: ECB Should Cut In October, Says Kazaks)

"But the pace must be one of agile pragmatism: in a very uncertain international environment we will keep all our options at our coming meetings," he added.  Villeroy goes on to warn that the risk of missing the ECB's 2% inflation target to the downside in a persistent way is as great as that of exceeding it.