By Jeannette Neumann

MADRID--The election of Donald Trump as U.S. president heightens global economic and political uncertainty, and the eurozone should respond by deepening ties among member states and bolstering investment, Bank of France Governor François Villeroy de Galhau said.

"We cannot yet predict what Mr. Trump's presidency will really be like, but we can expect a deep political shift, with consequences for American economic policies," Mr. Villeroy de Galhau said at an event on Monday in Madrid. Another unknown is on the horizon, he added: The outcome of the Italian referendum in December. "The first certainty is that we are facing a lot of uncertainty."

The European Central Bank's bond-buying program has been a salve to such uncertainty, Mr. Villeroy de Galhau said.

"Our monetary policy has safeguarded the euro area against the threat of deflation in recent times, and is achieving tangible progress towards our inflation target," he said.

Eurozone inflation is expected to exceed 1% in early 2017, said the French central banker, who is also a member of the ECB's governing council.

The ECB will continue its bond-buying program until at least March, Mr. Villeroy de Galhau said. "In the coming months, we will decide, in a pragmatic approach, about the best evolution after March of all our available tools," he added.

Write to Jeannette Neumann at

(END) Dow Jones Newswires

November 21, 2016 09:19 ET (14:19 GMT)

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