The member of the Governing Council of the European Central Bank and President of the Bank of France, François Villeroy de Galhaudeclared on Tuesday that Interest rates have reached a plateau where they will remain for the next few quarters. Villeroy de Galhau considers it premature to talk about a rate cut.
Key comments
“Our confidence in forward guidance was overconfident, we should be more modest with forward guidance.”
“We should expect more bond volatility, further increases would be another reason not to raise rates.”
“We need to discontinue our PEPP rollovers in due course, and possibly before the end of 2024.”
“As for our inflation target, I’m not looking at 2% with decimal precision.”
“The latest developments in Israel and the oil market should not significantly change the downward trend in inflation.”
“dIf we should and can avoid recession, a soft landing path is more likely“.
“The question quickly went from ‘When will we stop raising rates?’ to ‘When will we start cutting them?'”
“We see rates stagnating at least over the next few meetings and the next few quarters.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
