FRANKFURT (Dow Jones) – The French central bank chief François Villeroy de Galhau has opposed another Interest rate increase the European Central Bank (ECB). There is currently “no justification for a further increase in ECB interest rates,” the ECB Council member told the Handelsblatt. The latest monetary policy decisions will only take effect with a delay, and there has already been a sharp increase in long-term interest rates recently.
“There has been a lot of debate about the peak in interest rates,” said Villeroy de Galhau. “Now we have to speak of a plateau, and we will remain on this plateau for the necessary time.” The markets were a bit too optimistic about what could happen soon Interest rate cut concerns. The head of the French central bank believes the euro zone is on the right track in the fight against inflation. “Based on today’s data, we clearly expect inflation to return to the two percent target by 2025,” he said. There are also the first signs of a trend reversal in core inflation, which excludes energy and food.
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(END) Dow Jones Newswires
October 05, 2023 12:43 ET (16:43 GMT)