Central Banks

Villeroy Says Current Level of ECB Interest Rates Is Appropriate

  • Bank of France head comments on data showing slower inflation
  • Villeroy says long-bond market volatility ‘somewhat excessive’

European Central Bank headquarters in Frankfurt, Germany. 

Photographer: Sean Gallup/Getty Images
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The European Central Bank’s current level of interest rates is appropriate as policymakers are increasingly confident inflation will return to the target of 2%, Governing Council member Francois Villeroy de Galhau said.

The Bank of France governor’s comments came after data showed euro-area core inflation eased to its slowest pace in a year.