Funding conditions in the eurozone have improved since the last ECB meeting

Bank of France Governor Francois Villeroy de Gallo, European Central Bank policy maker, said today that the European Central Bank should take into account the recent improvement in financing conditions when discussing the future of pandemic-related monthly asset purchases. Villeroy added that economies in France and the eurozone should return to pre-pandemic levels in early 2022 or possibly earlier and that there was no danger of inflation rising permanently at this point.

Speaking on BFM Business radio, Villeroy explained that there is no urgent need to decide on the future of the pandemic emergency purchase program at the September meeting of the European Central Bank, stressing that financing conditions in the euro area have improved since the last ECB meeting in June.