(Bloomberg) — Bank of France Governor Francois Villeroy de Galhau said he backs the European Central Bank’s current approach of smaller interest-rate increases over the half-point step some of his colleagues would have preferred.
(Bloomberg) — Bank of France Governor Francois Villeroy de Galhau said he backs the European Central Bank’s current approach of smaller interest-rate increases over the half-point step some of his colleagues would have preferred.
“I had favored that we decide more limited hikes from now on and that’s what we did yesterday,” he said in an interview with Radio Classique on Friday. “This change in rhythm must be highlighted because it’s an important signal. We have slowed down not because our determination to beat inflation is diminished. We are committed to bring inflation toward 2% by 2025 and maybe even by the end of 2024.”
He spoke a day after the ECB continued its tightening campaign with a quarter-point move and the pledge of further hikes to come. Officials favoring a half-point rate increase didn’t put up much of a fight even though several were in favor, according to people familiar with the matter.
Villeroy also said:
- “Our aim isn’t to hurt economic activity, but to beat inflation,” though “we will beat inflation without provoking a recession.”
- “We’ve done what we needed to do, even if there will probably also be further hikes.”
- “Perseverance will matter more from now on.”
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