ECB' Villeroy: Will raise rates as much as necessary to bring core inflation down
|European Central Bank (ECB) policymaker Francois Villeroy de Galhau reiterated on Tuesday that they will raise interest rates as much as necessary to bring core inflation down, as reported by Reuters.
Additional takeaways
"This will have a positive effect on banks’ net income, European banks are hence more solid than feared by some."
"We should go to neutral rate without hesitation, by the end of the year."
"We could start then a second part of the journey, a more flexible and possibly slower one."
"I don’t say that rate hikes will stop there but we will have to comprehensively assess inflation and economic outlook."
"We are no longer gradual, but it is important to remain orderly."
"It means that you neither excessively surprise markets, nor tighten financial conditions too abruptly."
Market reaction
EUR/USD preserves its bullish momentum after these comments and was last seen gaining 0.65% on the day at 0.9888.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.