The European Central Bank's Governing Council member and head of the Bank of France, Francois Villeroy de Galhau, stressed the importance of the ECB being flexible in adjusting interest rates. He cautioned that if the central bank acts too slowly in response to economic conditions, it risks falling behind.

Villeroy pointed out that while high inflation has been a major concern, it is no longer the only significant risk for the euro area. He highlighted the growing worry of not meeting the ECB's 2% inflation target, especially if economic growth continues to be sluggish. Recent data indicates that inflation could reach the target by early 2025, underscoring the need for timely policy responses.