The European Central Bank (ECB) Governing Council member and Bank of France Head Francois Villeroy de Galhau said the inflation forecast justifies keeping loose central bank’s policy.
“There is no doubt that inflation will be below 2% target in 2023,” he added.
In her appearance on Monday, ECB President Christine Lagarde left doors open for higher inflation while adding that there is "every reason to believe" that the rebound in energy prices and supply bottlenecks would ease next year.
Market reaction
EUR/USD hovers near five-week lows of 1.1673, down 0.11% on the day. Firmer yields and energy crises undermine the euro vs. the greenback.
