ECB's Villeroy: We need to keep cool heads about inflation

 European Central Bank (ECB) Governing Council member and Bank of France Head Francois Villeroy de Galhau said on Tuesday that they need to "keep cool heads" about inflation and added most of the 2021 surge is temporary, per Reuters.

"We won't pretend to know today what inflation will be to the decimal in 2023," Villeroy added. "But the risk remains that we fall short of our inflation target rather than exceed it."

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen losing 0.16% on a daily basis at 1.1603.