Ukraine crisis means ECB needs to keep options open – Villeroy

The Ukraine crisis means the European Central Bank should keep its monetary policy options open and remain flexible on how policy is transmitted to the economy, ECB policy maker Francois Villeroy de Galhau said on Wednesday.

Villeroy, who is also governor of the French central bank, said that French banks’ and insurers’ direct exposure to Russia was limited, but noted that the single European bank supervisor had called for “enhanced vigilance” to cyber risks.

“We will assess in our Governing Council in March the more indirect consequences on inflation and growth, and we will be facts driven,” Villeroy told a Eurofi financial conference.

“More than ever, optionality – about the right monetary stance – and flexibility – to guarantee the right monetary transmission – are the two names of the game for our policy,” he added.