ECB could bring rates close to 2% by year’s end, says French governor
François Villeroy de Galhau estimates eurozone’s neutral rate is below or near 2%
The European Central Bank could increase interest rates to close to 2% by the year’s end, Banque de France governor François Villeroy de Galhau said.
Monetary policy normalisation is “fully warranted”, said Villeroy de Galhau, giving the Michel Camdessus Central Banking Lecture at the IMF’s Washington, DC headquarters on September 14.
Inflation in the eurozone increased year on year by 9.1% in August, a record high. On September 8, the ECB’s governing council increased interest rates by 75
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