ECB Risks 2% Undershoot If Euro Strength Persists, Villeroy Says

The European Central Bank is at greater risk of undershooting its inflation target following a sharp appreciation of the exchange rate, Governing Council member Francois Villeroy de Galhau said.

Policymakers can’t adopt an approach of “benign neglect” after gains of the magnitude seen since the start of the year, the Bank of France Governor said in an interview with Bloomberg Television on the sidelines of a conference in Aix-en-Provence, France.