Central Banks
ECB’s Villeroy Says Patience Needed After ‘Justified’ Rate Pause
- Policymakers should have confidence that inflation coming down
- Data earlier showed price increases slowed in the euro area
Francois Villeroy de Galhau
Photographer: Anna Rose Layden/BloombergThis article is for subscribers only.
The European Central Bank was fully justified in pressing pause on interest rate hikes last week and now must show patience as the impact feeds through to the economy, Governing Council member Francois Villeroy de Galhau said.
Policymakers should be confident that the ECB will bring inflation down toward 2% by 2025 and allow borrowing costs to remain at their current level long enough to be completely effective, he said Tuesday in a statement.