(Bloomberg) — The European Central Bank needs to be pragmatic as it raises interest rates in the coming months to get to a level by the summer that is sufficiently high to bring inflation back toward 2%, Governing Council member Francois Villeroy de Galhau said.
(Bloomberg) — The European Central Bank needs to be pragmatic as it raises interest rates in the coming months to get to a level by the summer that is sufficiently high to bring inflation back toward 2%, Governing Council member Francois Villeroy de Galhau said.
Speaking on French radio station Radio Classique on Wednesday, the Bank of France governor declined to say how far the ECB will ultimately raise borrowing costs. At 2% currently, he said rates are at a neutral level that neither accelerates nor slows inflation.
- “It will doubtless be necessary to go a bit beyond that in the coming months”
- “I am really calling for pragmatism — we need to look at where inflation is and the outlook for inflation”
- “By the summer we need to have reached what specialists call the terminal rate, which is the rate that will effectively bring inflation back toward 2%”
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