European Central Bank board member: Central Bank is prepared to respond to inflation when necessary.

Francois Villeroy de Galhau, a member of the European Central Bank's governing council, stated that the central bank is prepared to address inflation if rising energy prices start to affect other areas of the economy. Villeroy, speaking in Paris on Tuesday while presenting the annual report of the Bank of France, said, "Last Thursday, we unanimously decided to keep interest rates unchanged, but we are in a good position to take action when necessary in a necessary manner." Some policymakers at the European Central Bank have hinted that, as energy prices rise and transmit to goods and services, the central bank may consider raising borrowing costs as early as next month.