ECB Holds Firm: No Interest Rate Hike Amid Middle-East Conflict

Francois Villeroy de Galhau, Governor of the Bank of France and ECB policymaker, declared that there is no current necessity to raise interest rates amidst the Middle-East conflict. Despite potential inflation and growth impacts, financial stability remains secure.

The Governor of the Bank of France, Francois Villeroy de Galhau, announced on Thursday that the European Central Bank sees no current necessity to raise interest rates. This announcement comes against the backdrop of the ongoing conflict in the Middle-East.

In an interview with French radio station France Inter, Villeroy de Galhau stated, 'I don't see any reason today why we at the ECB should raise our interest rates. We'll see meeting after meeting, but today I don't see any reason.'

He further acknowledged that the conflict might drive inflation up and growth down, but emphasized that the extent of these effects would depend greatly on how long the situation persists.

(With inputs from agencies.)