ECB's Villeroy: In favour of 50 bp rate hike on Dec. 15
Reuters reports that Europen Central Bank board member François Villeroy de Galhau said on Sunday that he is in favour of a 50 basis point hike to 2% of the European Central Bank's main rate at its board meeting on Dec. 15.
The central banker also said in an interview with LCI television that he expects inflation will peak in the first half of next year.
Key notes
ECB's Villeroy says inflation should peak in first half next year.
ECB's Villeroy says he personally favours 50 bp hike at rate meeting on Dec 15.
ECB's Villeroy says rate hikes will continue after Dec 15, cannot say when they will stop.
ECB's Villeroy says thinks France and Europe will escape hard landing of economy.
ECB's Villeroy says recession next year is unlikely.
ECB's Villeroy says expects to beat inflation by 2024-2025.
EUR/USD update
Meanwhile, the Euro fell to below 1.05 vs. the US Dollar on Friday, following a hotter-than-expected jobs report for the US. However, EUR/USD recovered back towards the highs of the day ending around 1.0540 on dovish rhetoric from Federal Reserve speakers. As for the ECB, analysts stay divided on whether the central bank will hike borrowing costs by a 75bps for the third time when it meets in December or will opt for a smaller 50bps increase.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
