Even if Europe is better equipped to deal with a crisis like in 2008, the governor of the Bank of France calls for maintaining maximum attention on global financial markets

In an interview with Italian newspaper La Stampa, François Villeroy de Galhau, Governor of the Bank of France and member of the ECB Governing Council, emphasized the need to closely monitor global financial markets amidst the current situation in the Middle East. He stated that compared to 2007, the financial stability is better due to strict banking regulations like Basel III.

Villeroy de Galhau highlighted the importance of observing American stock market indices, private credit, and crypto assets to ensure financial stability. He also mentioned that there is a higher risk of systemic risks in the United States compared to Europe, especially with the trend towards deregulation across the Atlantic.

Regarding potential ECB interest rate interventions in April, Villeroy de Galhau considered it premature to set a timeline, emphasizing that decisions are dependent on economic data. The ECB recently maintained its main refinancing rate at 2% during its last meeting on March 19, despite rising prices related to the Middle East conflict.

Overall, Villeroy de Galhau stressed the importance of remaining vigilant in the face of global financial risks and emphasized the need for careful monitoring in these uncertain times.