Investing.com – As markets wait for the European Central Bank’s (ECB) monetary policy decision on March 10, member and Bank of France chief Francois Villeroy warned that euro zone inflation remains too low, suggesting that region’s central bank may need to take additional easing measures.
Villeroy commented in a speech in Paris on Wednesday that the risks to the global economy had “indisputably increased”, but still felt that the market volatility was excessive.
After euro zone CPI data was released last Thursday, the ECB member confirmed on Wednesday that inflation in the region was too low, although Villeroy insisted that it was still not in deflation.
Though he admitted that the “fight was not over”, Villeroy promised that the ECB would be vigilant on second-round effects from low oil prices, especially with regard to the member forecasts that will be published on March 10 along with the policy decision.
In any case, the Bank of France governor said that believed euro zone inflation would turn slightly positive in the second half of 2016 as oil prices stabilize.
Earlier on Wednesday, fellow ECB member Benoit Coeure stressed the importance of the central bank’s commitment to push inflation up via accommodative monetary policy, stating that it was “vital” for the region’s economy and health of its banks.