Villeroy de Galhau reflects on Banque de France tenure and future challenges
François Villeroy de Galhau, Governor of the Banque de France, announced his departure in June 2026 to lead the Apprentis d'Auteuil foundation. In an interview with Les Echos, he assessed his nearly 11-year tenure and outlined key tasks for his successor.
Transforming the 'old lady' into a modern central bank
During his nearly 11-year tenure, François Villeroy de Galhau oversaw a significant transformation of the Banque de France.
He emphasized a collective effort that modernized the institution's image, making it more public-facing and effective.
The bank achieved annual cost reductions of nearly 4% in constant euro through natural attrition and reorganization, including its branch network.
Under his leadership, the Banque de France was recognized three times as the greenest central bank in the G20 by international NGOs.
He also highlighted enhanced engagement with individuals and businesses, particularly during the Covid crisis, and pioneering innovation within the Eurosystem, notably in Central Bank Digital Currency and artificial intelligence.
A key achievement was improving gender parity on the Executive Committee, increasing female representation from two to six members.
Navigating inflation with agile pragmatism
Villeroy de Galhau consistently advocated for a pragmatic approach to monetary policy, rejecting 'dove' or 'hawk' labels.
He supported unconventional policies, while highlighting financial stability concerns and opposing asset purchases in September 2019. He contributed to managing the inflation wave from late 2021, advocating for swift rate hikes to prevent even higher levels.
He now considers the battle against inflation won, with rates at 2%, the lowest among major advanced economies outside Japan.
He currently sees downside risks to price developments slightly outweighing upside risks, advocating for agile pragmatism on interest rates.
Stability and innovation: The twin mandates
Villeroy de Galhau's departure underscores the evolving role of central banks, balancing traditional mandates with rapid technological shifts.
His emphasis on stability alongside innovation, particularly in digital currency and payments, highlights critical future challenges.
Successors must master this public-private partnership to ensure monetary sovereignty in a transforming financial landscape.