European Central Bank President Villeroy said interest rates may be raised once the inflation target is reached
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As ECB policymaker Francois Villeroy de Galhau said on Tuesday, the European Central Bank (ECB) has indicated that it will continue to move forward once it is clear that the outlook for inflation is consistent with its 2% target. Be prepared to lower interest rates. While market participants expect the ECB to cut interest rates further this year, with action initially expected as early as March or April, Villeroy stressed that the ECB would be data-driven and not rushed.
Villeroy, who is also the governor of the Bank of France, made the remarks in a New Year’s address to the French financial community. He did not specify a timetable for a possible rate cut but stressed the importance of reliable long-term data to confirm that inflation is stable above the ECB’s target.
Although Eurozone inflation rose in December, rising to 2.9% from 2.4% in November, there are already signs of easing. Low energy prices no longer affect inflation calculations.
Reuters contributed to this article.
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