ECB's Villeroy says central bank independence is a prerequisite for monetary policy to be successful. Experience shows that independence brings lower inflation and lower rates.

Villeroy's emphasis on the necessity of central bank independence underscores the ECB's commitment to maintaining its credibility in monetary policy. This statement reinforces the idea that a robustly independent central bank is correlated with positive economic outcomes like lower inflation and interest rates, potentially impacting market expectations for future ECB policy moves and Euro valuation.