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ECB to act as needed to support euro-area economy: Bank of France governor

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The European Central Bank (ECB) has the determination and capacity to act as needed to support the euro-area economy, Bank of France governor Francois Villeroy de Galhau said.

[PARIS] The European Central Bank (ECB) has the determination and capacity to act as needed to support the euro-area economy, Bank of France governor Francois Villeroy de Galhau said.

Asked about quantitative easing, Mr Villeroy said in a CNBC interview that any action would depend on the economic data over the next few months. There is a "continuing slowdown" in the economy along with "significant" wage increases in the euro area and job creation on both sides of the Atlantic, he said.

"Let us wait for our next governing councils, and there are several to come, to assess the data and then to decide," he said. "This is what I always call pragmatism."

Current ECB president Mario Draghi will preside over Governing Council meetings until his term ends on Oct 31. Christine Lagarde, head of the International Monetary Fund, has been nominated to succeed him.

"Christine Lagarde, after Jean-Claude Trichet, after Mario Draghi, will be a great president for the ECB and she will have my full support in the Governing Council," Mr Villeroy said.

ECB executive board member Benoit Coeure said on Sunday that Ms Lagarde was "uniquely qualified" for the job because of her knowledge of how the global economy and Europe work and her ability to speak to financial markets.

BLOOMBERG