ECB’s Villeroy: We don’t target exchange rate but its does matter for inflation

In a scheduled speech on Friday,  the European Central Bank (ECB) Governing Council member and Bank of France Head Francois Villeroy de Galhau said, “we don't target exchange rates. But obviously the exchange rate does matter for inflation and monetary policy.”

Additional comments

“The recovery definitely follows a "bird's wing" profile, with a sharp rebound between May and August and then an expected a more gradual catching-up till 2022.”

“We keep all our options open, and we will be ready to do more if appropriate. “

“We will carefully monitor developments in the exchange rate, with regard to its implications for the medium-term inflation outlook.”

more to come ...