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Israel-Iran war ramping up uncertainty, ECB's Villeroy says

BY Reuters | ECONOMIC | 06/17/25 11:39 AM EDT

LONDON, June 17 (Reuters) - The Europe Central Bank needs to be even more agile with its interest rate policy following the eruption of the war between Israel and Iran, France's central bank governor Francois Villeroy de Galhau said on Tuesday.

Villeroy said the ECB was currently "in a good position" after it cut interest rates back to 2% this month, but pointed to growing uncertainty given that the Middle East conflict has already pushed oil prices up sharply.

"Underlying inflation, is it affected or not by the spillovers of the commodities prices, the oil price," Villeroy told the Financial Times' Global Borrowers & Bond Investors Forum in London.

The ECB needs "agile pragmatism more than ever", Villeroy added.

(Reporting by Marc Jones)

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