French Central Bank Governor Signals Cooling Inflation Amid Hormuz Tensions

Speaking to Bloomberg TV on Friday, Moulin noted that the central bank currently observes no evidence of second-round inflationary effects stemming from the regional instability. This assessment suggests that despite the volatility in maritime shipping lanes, the immediate pass-through to the domestic economy remains contained.

However, the broader outlook for France remains tepid. Economic growth throughout June proved notably subdued, failing to gain any significant momentum. Looking ahead to the second quarter, the central bank maintains a conservative stance, anticipating that the current lack of dynamism will persist without a clear catalyst for a sharp reversal in performance.