Central Banks
ECB Rates Probably at Plateau for a Few Quarters, Villeroy Says
- French governor says PEPP wind-down may start before end 2024
- ‘Expect our next meetings to be a bit more boring,’ he says
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The European Central Bank will likely keep rates at 4% for a few quarters and may wind down its Covid bond-buying portfolio earlier than planned, Governing Council member Francois Villeroy de Galhau said, pushing back against expectations for a hasty loosening of inflation-fighting measures.
The French central banker said that even if the dis-inflationary trend in the euro area is “solid,” and “somewhat quicker” than expected, investors have shifted too quickly from asking when rate hikes would stop to asking when the central bank will cut.