ECB's Villeroy says the ECB has won the battle against inflation, domestic French inflation is undershooting on temporary factors but it is not too low

ECB's Villeroy says the ECB has won the battle against inflation, domestic French inflation is undershooting on temporary factors but it is not too low.

Villeroy's remarks suggest a hawkish tone from the ECB, indicating confidence in managing inflation pressures. By acknowledging that domestic inflation in France is low due to temporary factors, it signals that the ECB may maintain a cautious stance rather than pivoting towards easing policies. This could support the Euro and affect future rate expectations in the region.