Central Banks
ECB to Keep Interest Rates at 4% as Long as Needed, Villeroy Says
- French central bank says not at point where rates could be cut
- Bank of France trims forecasts for underlying inflation
Francois Villeroy de Galhau
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The European Central Bank will keep interest rates at 4% for as long as needed to tame inflation, Governing Council member Francois Villeroy de Galhau said — indicating he doesn’t favor future increases at this stage.
“Looking at the situation today, we think that is a good level and barring surprises — we are pragmatic, we look at how inflation evolves – it’s more important now to be patient, to be tenacious,” he told BFM TV Tuesday. “We have the right dose, but we have to take the medicine for a sufficiently long time and we will see the deceleration of inflation.”