Central Banks
ECB’s Villeroy Says Rates Will Likely Reach About 2% in December
- Rate increases next year may be more flexible and less rapid
- Villeroy says jumbo interest rate hikes won’t become new habit
Francois Villeroy de Galhau
Photographer: Jason Alden/BloombergThis article is for subscribers only.
The European Central Bank will probably raise interest rates again in December to a “normalization range” of around 2% to combat surging inflation, Governing Council member Francois Villeroy de Galhau said.
The institution is likely to continue to raise borrowing costs beyond the end of this year, though it may be “more flexible and possibly less rapid,” he said in a speech at the French German Business Forum in Paris on Wednesday.