Economics
ECB Presidential Contenders Wary on Chance of 2019 Rate Hike
- Benoit Coeure and Francois Villeroy de Galhau spoke in Davos
- Investors see 2019 rate increase as unlikely amid slowdown
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Two of the top contenders to become the next European Central Bank president said they don’t know if the institution will be able to raise interest rates this year.
Benoit Coeure and Francois Villeroy de Galhau both said in Bloomberg TV interviews in Davos that the ECB is still judging the extent of the euro area’s economic slowdown and any increase in official rates will depend on that prognosis. Their views are key because as well as being current policy makers, the men signaled that they’d be willing -- if asked -- to succeed Mario Draghi after he steps down in October.