Overly loose budget policies risk fueling inflation at a time when the European Central Bank is fighting to bring it lower, ECB policymaker Francois Villeroy de Galhau said on Friday. The ECB raised its main interest rate on Thursday to a record high 4% and signalled its latest hike was likely to be the last as the euro zone's economy slows after a moving to bring inflation lower over more than a year. Speaking at a financial conference in Spain, Villeroy declined to speak about the decision and urged governments to not complicate the ECB's task as it seeks to bring inflation back to its 2% target towards its 2% by 2025.