Villeroy for a more aggressive ECB rate hike
2022.12.04 12:07
Villeroy for a more aggressive ECB rate hike
Budrigannews.com – The head of the French central bank, Francois Villeroux de Gallo, said on Sunday that the Eurobank should increase the interest rate by 50 basis points b.p. On December 15, the ECB strengthened expectations of a slowdown in the pace of tightening of the ECB’s credit policy.
In July, the ECB increased the interest rate to a record 200 basis points. However, the decline in eurozone inflation, as well as more favorable signals from the US Federal Reserve, strengthened the arguments for a 50 basis point increase after the US Federal Reserve raised them by 75 basis points last.
Despite the fact that a long list of politicians supported a 50 percent rate hike, the market is now mostly evaluating it, but the comments of the Central Board of Governors for Setting rates believe that the step is almost over.
Member of the Governing Council of the European Union Villera also said that he expects the rate hike to continue until December 15 of this year, but could not specify when it will end. The Villiers predicted that inflation would reach its highest level at the beginning of this year, and then begin to decrease.
“I hope that growth will decrease around 2024-2025,” he added, adding that, according to him, France and Europe will avoid a hard economic landing, and the recession during the year is far—fetched.
