Euro zone inflation fears are much exaggerated: ECB’s Villeroy

Governor of the Bank of France de Galhau attends a press conference after the Franco-German Financial Council meeting in Berlin

PARIS (Reuters) – Fears of rising inflation in the euro zone are highly exaggerated, Bank of France Governor Francois Villeroy de Galhau said on Monday.

“If deflation fears have fortunately been warded off thanks to our action, the opposing fear of a return of inflation would be much exaggerated today,” Villeroy said.

(Reporting by Yann Le Guernigou; Writing by Michel Rose; Editing by Sudip Kar-Gupta)