ECB's Villeroy says no need now for monetary policy response to coronavirus

ECB policymaker Francois Villeroy de Galhau said on Tuesday that there was currently no need for more monetary policy action in the face of the coronavirus outbreak. Speaking at a sustainable finance conference in Paris, Villeroy said the outbreak would have "negative but temporary consequences" on the economy.

"It is mainly a negative supply-side shock, and this has as a consequence that we shouldn't overstate the adequacy of a monetary policy response," Villeroy, who is also governor of the Bank of France, said. He added that the French central bank was likely next month to revise slightly downward its forecast of 1.1% for French economic growth in 2020.