French, euro zone economies should return to pre-COVID levels by early 2022 – Villeroy

The economies in France and the euro zone should be back to pre-COVID levels in early 2022 or maybe earlier, Bank of France Governor Francois Villeroy de Galhau said on Monday.

Villeroy, who is also a European Central Bank policymaker, told BFM Business radio that there was no risk of higher inflation at this stage. 

He added the European Central Bank should take account of a recent improvement in financing conditions in discussing the future of its pandemic-related monthly asset purchases, ECB policymaker Francois Villeroy de Galhau said on Monday.

Villeroy said there was no urgency to decide on the future of the Pandemic Emergency Purchase Programme at the ECB’s September meeting because unlike the U.S. Federal Reserve, the ECB could adjust its monthly purchases according to financing conditions.

Speaking on BFM Business radio, Villeroy said that financing conditions in the euro zone had improved since the ECB’s last meeting in June.

“Our discussion should take account of this improvement in financing conditions,” Villeroy said.