French central bank head Villeroy to stand down early

Bank of France Governor Francois Villeroy de Galhau will stand down in June, a bit more than a year before the end of his term, the central bank said on Monday.

Villeroy, 66, announced his departure in a letter to the central bank's staff, saying that he was leaving to lead a Catholic foundation supporting vulnerable youth and families.

His early departure hands an opportunity to French President Emmanuel Macron to name Villeroy's successor, which must also be approved by lawmakers in the National Assembly's finance commission.

If he served out his full term ending late October 2027, his successor's nomination would have fallen on the winner of April 2027 presidential election, which polls suggest a far-right candidate would have a solid chance of winning.

"I made this important decision naturally and independently," Villeroy told staff. "The time between now and the beginning of June is sufficient to organise my succession in peace."

With Villeroy's departure, the European Central Bank will lose one of its most outspoken policy doves. Villeroy has been consistently warning for months about the downside risks to inflation.

-Reporting by Leigh Thomas, editing by Inti Landauro and Toby Chopra/Reuters