ECB's Villeroy: Deal on rate hikes in the near-term probably done

Joel Frank Independent Analyst

Bank of France head and European Central Bank governing council member Francois Villeroy de Galhau said on Monday that a deal on rate hikes in the near term is probably done, reported Reuters. His remarks come after ECB President Christine Lagarde said in a Monday blog post that the ECB would likely lift rates out of negative territory by the end of September.

Villeroy added that Eurozone growth remains resilient, with the main short-term problem being inflation. Because of a broadening of inflationary pressures, he continued, the ECB must normalise monetary policy to get inflation back to 2.0%. The ECB is set to normalise policy, he emphasised, not tighten it.

Earlier in the day, the May German IFO survey came in stronger than expected.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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