The European Central Bank is responding in a measured way to inflation as most prices are stable and pressures are largely imported rather than driven by domestic factors, Governing Council member Emmanuel Moulin said.

At its meeting on Thursday, the central bank refrained from a third increase in borrowing costs since the Iran war pushed up energy prices. But officials discussed the possibility of a hike and President Christine Lagarde said the direction of travel for future policy is “clear.”

“Excluding energy and fresh produce, prices remain relatively stable. Similarly, we aren’t seeing spillover effects to salaries at this stage,” Moulin said in an interview with French newspaper La Montagne. “In the current situation, with inflation mainly imported, the ECB is adopting a measured approach.”Moulin, who’s also governor of the Bank of France, said the ECB will continue to follow the inflation situation “very closely” and take action at future meetings depending on data it has.

He reiterated his opposition to French far-left presidential candidate Jean-Luc Mélenchon’s proposal to cancel or freeze sovereign debt held by the Bank of France. Moulin said doing so would create a balance-sheet hole and spark difficulties for the entire euro area, without any gain for public finances.

“France has never defaulted on its debt since 1797,” he said. “Talking about such a cancellation would not only achieve very little, but it is already costing us as it creates distrust toward our country.”Moulin also said it’s not the ECB’s job to step into help France with its fiscal challenges, which have spooked investors in recent weeks, sparking a selloff of bonds and driving up borrowing costs.

“Our fiscal problems should be dealt with in France, notably by voting a budget that reduces the deficit,” he said. “That’s what will enable us to reassure investors on the direction the country is going.”