Villeroy Pushes Back Against ‘Overreaction’ on ECB Rate Bets
- ECB not obliged to hike through September, Villeroy says
- Deutsche Bank lifts its forecast for the peak in ECB rates
Francois Villeroy de Galhau
Photographer: Jason Alden/BloombergThis article is for subscribers only.
Markets may have overshot in recent days when placing bets on the peak for European Central Bank interest rates, according to Governing Council member Francois Villeroy de Galhau.
The ECB is “in no way” obliged to raise borrowing costs at every meeting between now and September, with the deposit rate already at a level that restricts the euro-zone economy, the Bank of France Governor told the Les Echos newspaper. The Bank of France confirmed Villeroy’s comments to Bloomberg.