Central Banks
ECB Has ‘Marginal’ Distance to Cover With Rate Hikes, Villeroy Says
- Bank of France survey shows easing price pressure in industry
- Central bank sees slightly positive growth in second quarter
Francois Villeroy de Galhau
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
The European Central Bank has only a “marginal” distance left to cover in raising interest rates to combat inflation, according to Governing Council member Francois Villeroy de Galhau, who sounded a more cautious tone on future monetary tightening than some of his colleagues.
Inflation in France — where Villeroy heads the central bank — is moving past its peak and may ease to about 4% by year-end before meeting the ECB’s 2% goal as soon as end-2024, he told the Ebra group of regional French newspapers in an interview published Wednesday.