ECB's Villeroy: No need for ECB to raise rates next year

European Central Bank (ECB) Governing Council member Francois Villeroy de Galhau said on Wednesday that there was no need for the ECB to raise its policy rate in 2022, as reported by Reuters.

Regarding the inflation outlook in France, Villeroy noted that it's expected to return below 2% next year.

Market reaction

The shared currency came under renewed bearish pressure following these comments. As of writing, the EUR/USD pair was trading at fresh session lows near 1.1570, losing 0.05% on a daily basis.