The most recent inflation data strengthens the case for normalization, according to a French central banker.

Paris – The Bank of France’s Governor, Francois Villeroy de Galhau, stated on Tuesday that the recent rises in inflation make it even more important to exit special monetary policy measures.

Early Tuesday, preliminary EU-harmonised data showed that France’s inflation rose more than private economists expected in May, reaching a new high of 5.8 percent.

In a speech at France’s financial regulator, ACPR, which he also runs, Villeroy said in a speech that the latest inflation numbers for May in France and other countries confirm the rise we expected and the need for a gradual but firm normalization of monetary policy,” Villeroy said in a speech at France’s financial regulator, ACPR, which he also runs.

Villeroy said that the governing council of the European Central Bank would make a decision about normalization next week. He also said that rising interest rates should be good for the profitability and net margins of French banks.