The data, not the markets, will decide the next steps of the ECB: Villeroy

AIX-EN-PROVENCE, France (Reuters) – The European Central Bank (ECB) will decide on its upcoming political decisions based on incoming economic data and not on financial market fluctuations, the ECB president said on Monday. François Villeroy de Galhau.

Villeroy, who is also the governor of the French central bank, told CNBC television that there should be no doubt about the ECB's determination to act and its ability to do so should it prove necessary.

"We look at the markets but we are not dependent on the market. We depend on the data, "Villeroy said during an interview on the sidelines of an economic conference held in the south of France.

"Let's wait for our next board of directors – and there are more to come – to evaluate the data and decide," he added.

Bond yields have recently fallen due to weak economic data, prompting central banks to adopt radical new monetary stimulus measures to avoid the collapse of inflation expectations.

Villeroy said the uncertainty created by trade tensions was the biggest threat to the global economy, which central banks could do nothing to address.

"It is up to political leaders to reduce these uncertainties, which are sometimes self-created. We can not compensate for trade tensions, "Villeroy said.