Bank of France gov speaking in Paris
- risks to global economy have indisputably increased
- market volatility is excessive
- EZ inflation remains too low
- EZ isn't in deflation but the battle is not over
- EZ inflation should turn slightly positive in H2 once oil prices stabilise
- ECB will be looking for signs of second-round effects of low oil prices when it publishes its forecasts next week
- must not let inflation forecasts become too pessimistic
- French banks stronger now than before 2007-08 crisis
Inflation/deflation and growth dominating the landscape as we head into the ECB meeting next week.
Villeroy - Deflation what deflation?
