Villeroy: ECB's Monetary Policy Will Evolve Independently of the Fed

Forex - According to Francois Villeroy de Galhau, member of the ECB Governing Council and Governor of the Banque de France, the European Central Bank's policy will develop independently of what happens at the Federal Reserve.

Speaking to Ouest-France, Villeroy said, "The decisions we make at the ECB with Christine Lagarde are independent of those made by the Fed. The proof of this is that we started to cut interest rates at the beginning of June, while the Fed only did so three months later. With the decline in inflation, we will be able to continue lowering interest rates."

Villeroy indicated that the expected resurgence of protectionism following Donald Trump's return to the White House in January "will likely mean more inflation in the U.S. and less growth everywhere."

The ECB has lowered rates three times since June and is expected to continue doing so in the next four meetings. Villeroy stated, "Prices are increasing on average less rapidly than wages – this allows us to lower interest rates."