ECB's Moulhin: We're in a good position

Emmanuel Macron’s nominee for the Bank of France, Emmanuel Moulin, emphasized the importance of the European Central Bank (ECB) maintaining readiness to adjust monetary policy in response to rising inflationary pressures while safeguarding economic growth. Speaking before the Senate finance committee, Moulin highlighted the need for the ECB to monitor inflation expectations as cost increases begin to spread more broadly across the euro area.

Moulin, who is seeking confirmation to succeed François Villeroy de Galhau, acknowledged the delicate balance the ECB must strike between price stability and growth in an increasingly volatile economic environment. When asked about the likelihood of a rate hike in June, he deferred to the Governing Council’s data-driven decision-making process, stating that a detailed analysis of data will be necessary to enlighten the position of the Governing Council.

His nomination has drawn attention due to his close ties to Macron, with some political groups questioning his independence. However, Moulin has asserted his commitment to public service and impartiality, stating that he has served the state for 30 years and will carry out his duties without bias.

The ECB’s broader financial stability outlook remains underpinned by geoeconomic tensions and energy supply disruptions, according to the latest Financial Stability Review. The report underscores the need for vigilance as global private credit markets face stress and asset valuations remain sensitive to geopolitical developments.