ECB's Villeroy: Energy Costs Yet to Trigger Spillover Effects in Eurozone

European Central Bank (ECB) Governing Council member François Villeroy de Galhau stated that the significant rise in energy costs has not yet caused a spillover effect in other economic sectors within the Eurozone. According to Jin10, Villeroy mentioned in an interview with Le Figaro that while such effects have not been observed, there remains a high level of vigilance regarding the risk of rising inflation expectations. He assured households and businesses of the ECB's commitment to restoring the inflation rate to 2% in the medium term, emphasizing that necessary actions will be taken without hesitation to achieve this goal. Villeroy is set to step down as the Governor of the Bank of France in June, meaning he will not hold the position during the ECB meeting scheduled for June 10-11. The market anticipates that the ECB will raise interest rates by 25 basis points at this meeting.