European Central Bank board member Villeroy de Galhau: If the euro continues to strengthen, the central bank may face the risk of inflation not reaching its target.

Member of the European Central Bank management committee, Francois Villeroy de Galhau, stated that the ECB faces a greater risk of inflation not meeting its target after a significant increase in the exchange rate. The French central bank governor said during a meeting in Aix-en-Provence in France that after experiencing a significant increase since the beginning of the year, policymakers cannot afford to "turn a blind eye" to it. Villeroy cited estimates that a sustained 10% increase would suppress inflation by 0.2 percentage points each year over the next three years. He said, "This could increase the risk of us not reaching our target", "This is a risk we must consider."