Central Banks

Villeroy Urges ECB Hikes Until Underlying Inflation Has Peaked

  • Villeroy sees zenith of headline inflation in first half 2023
  • Pace of hikes may slow as rates ‘not far’ from neutral level
Francois Villeroy de GalhauPhotographer: Jason Alden/Bloomberg
Lock
This article is for subscribers only.

The European Central Bank should keep raising interest rates, even at a reduced pace, until inflation excluding energy and food prices starts to ease, Governing Council member Francois Villeroy de Galhau said.

“As long as underlying inflation has not clearly peaked, we shouldn’t stop on rates,” the Bank of France Governor said in an interviewBloomberg Terminal with the Irish Times.