The European Central Bank (ECB) has signaled its readiness to take necessary measures to control inflation, according to remarks from Bank of France Governor Francois Villeroy de Galhoud.
Speaking at an event in Singapore, Villeroy underscored the ECB's determination to keep inflation on track, despite recent surges linked to the ongoing conflict in Iran.
Markets are currently pricing in a potential rate hike at the ECB's next meeting, reflecting growing expectations of tighter monetary policy.
This comes amid a backdrop of elevated inflation in the eurozone, which has been exacerbated by geopolitical tensions and energy market volatility.
The ECB's governing council opted to maintain interest rates at its April meeting, even as inflation pressures mounted.
However, the central bank's latest comments suggest a shift in tone, with officials hinting at a willingness to act if necessary to stabilize prices.