PARIS, Sept 10 (Reuters) - The European Central Bank must keep up its support for the economy in light of currently low inflation, ECB policymaker Francois Villeroy de Galhau said on Thursday.
The bank, grappling with inflation that turned negative last month for the first time since May 2016, maintained earlier on Thursday its forecast for 0.3% inflation for the year as a whole, but said more months of negative price movements were yet to come.
“The ECB’s monetary policy must continue to support economic activity, for the sake of its own mandate of price stability,” Villeroy, who is also head of the French central bank, said in a speech in Berlin.
“In the short and medium term, the crisis will have disinflationary effects that are already noticeable,” he added. (Reporting by Leigh Thomas; Editing by Hugh Lawson)
Our Standards: The Thomson Reuters Trust Principles.