ECB plans to raise rates until summer
2023.01.05 14:07
ECB plans to raise rates until summer
Budrigannews.com – According to French ECB policymaker Francois Villeroy de Galhau, interest rates should reach a peak by this summer and hikes shouldn’t be “too mechanical.”
Since July, the European Central Bank has raised interest rates four times in a row to stop a historic rise in inflation and has promised to do so again to bring price growth closer to its 2% goal.
In a New Year’s address, Villeroy, who is also the governor of the French central bank, stated, “It would be desirable to reach the right ‘terminal rate’ by next summer, but it is too early to say at what level.”
He continued, “We need to be pragmatic and guided by observed data, including underlying inflation, without fetishism for too mechanical increases.”
Villeroy stated that at that point, the ECB would be prepared to maintain the terminal rate for as long as necessary.
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