ECB’s Villeroy: Will take as much time as necessary to examine any rate hike decision

“The European Central Bank (ECB) will take as much time as necessary to examine any rate hike decision,” policymaker Francois Villeroy de Galhau said on Friday.

Additional comments

“Inflation should get back down to around 2%.”

“There is no recession in Europe.”

“We are lifting the foot from the accelerator without stepping on the break” when asked on the central bank’s response to inflation.

“Other central banks are taking much harder line on response to inflation.”

“There is no automatic function that will lead to lifting rates.”

Market reaction

EUR/USD has erased gains and now trades modestly flat at 1.0978, as the US dollar remains firmer on the day amid the Ukraine crisis and inflation concerns.