ECB policymaker Francois Villeroy de Galhau highlighted the ECB’s resolve to not be swayed by market wings. Economic data will be the determining factor for its next policy move.

In an interview on Monday, ECB policymaker Francois Villeroy de Galhau made it lucidly clear that with regard to the ECB’s next policy, incoming economic data will act as its guiding principle rather than financial market swings.

Incidentally, Villeroy is also the governor of the French central bank. In an interview to CNBC television, he said, there should be no doubt about the ECB’s determination to act and its capacity to do so if it proved necessary.

“We look at the markets but we are not market dependent. We are data dependent,” said Villeroy in the interview on the sidelines of an economics conference in southern France. “So let us wait for our next governing councils – and there are several to come – to assess the data and then to decide”.

In recent months, bond yields are seeing a new low in the wake of weak economic data. This is applying more pressure on central banks to put in motion new monetary stimulus to keep inflation expectations from collapsing.

Villeroy stated, uncertainty created by trade tensions was the number one threat to the global economy and central banks can do little to fix this issue.

“It’s up to political leaders to reduce these uncertainties, which are sometimes self created. We cannot compensate for trade tensions,” said Villeroy.

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