ECB's Villeroy: Exiting from PEPP would not signal end of very accommodative policy

European Central Bank (ECB) Governing Council member Francois Villeroy de Galhau said on Tuesday risk remains that they fall short of the 2023 inflation target rather than exceed it, as reported by Reuters.

"This calls for continued accommodative monetary policy," Villeroy added and noted that exiting from the Pandemic Emergency Purchase Program would not signal the end of the ECB's very accommodative monetary policy.

Market reaction

The EUR/USD pair showed no immediate reaction to these remarks and was last seen trading flat on the day at 1.1554.