ECB needs ‘persistence’ in tight policy, French governor says
Transmission is slow but rate should reach terminal level in summer, says Villeroy de Galhau
Monetary policy transmission in the eurozone will be over two years, Banque de France governor François Villeroy de Galhau said in a speech on May 25.
The European Central Bank will have to keep interest rates high for longer to bring inflation down to the 2% target by 2025. “Persistence is now more important than speed; the duration for which we will maintain rates is now more important than the precise terminal level we will reach,” he told the ICMA conference in Paris.
The French governor
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