ECB Governing Council member Villeroy: ECB has not yet observed significant spillover effects from rising energy costs

Golden Ten Data reported on May 26 that European Central Bank Governing Council member Villeroy stated that the significant rise in energy costs has not yet triggered a chain reaction in other sectors of the eurozone economy. In an interview with Le Figaro, he said: "Currently, we have not seen such a spillover effect, but we remain highly vigilant about the risks of rising inflation expectations. Households and businesses can trust that we are able to restore the inflation rate to 2% in the medium term—if necessary, we will not hesitate to take action to achieve this goal." Villeroy will step down as Governor of the Bank of France in June, which means he will no longer hold the position when the European Central Bank meets on June 10-11. Markets expect the ECB to raise interest rates by 25 basis points at this meeting.