ECB’s Villeroy: Inflation in France should reach peak during the first semester

Dhwani Mehta FXStreet

European Central Bank (ECB) Governing Council member and French central bank governor Francois Villeroy de Galhau said on Wednesday, “Inflation in France should reach a peak during the first semester.”

Additional comments

“Expect growth in France to be slightly positive in 2023, slightly higher than the +0.3% forecast in December - before the expected recovery in 2024.”

“Now entering a new phase of monetary policy more comparable to a long-distance race.”

“It is preferable to reach the terminal rate by summer, by September at the latest.”

“We are committed to bring inflation back to 2% by end 2024.”

“Disinflation we will carry out will not lead to recession.”

Market reaction

EUR/USD holds the latest upside near 1.0635, adding 0.57% on the day. Hawkish ECB expectations drive the Euro through the roof. German inflation data is next in focus.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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