ECB’s Villeroy: Eurozone inflation at risk of getting entrenched
|"Euro zone inflation is at risk of getting entrenched above 2% so the European Central Bank will keep fighting excessive price growth, even as its policy response is shifting gears," said French central bank chief Francois Villeroy de Galhau late Tuesday per Reuters.
Additional comments
We now face the risk of entrenched inflation, which lies in the underlying or ‘core’ component.
Inflation has become more widespread, and potentially more persistent.
Monetary policy was most effective in tackling underlying or core inflation.
I expect price growth back at around the ECB's 2% target by the end of 2024 or the end of 2025.
We at the ECB are now moving from a 'sprint' to a 'long-distance race'.
Inflation outlook, underlying inflation readings and the effectiveness of policy transmission will be the key factors in the next decisions.
EUR/USD grinds higher
EUR/USD holds onto the previous day’s recovery moves from a one-week low to 1.0915 by the press time.
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