The European Central Bank (ECB) will have a “decisive” meeting in June and an “active” local summer in the monetary normalization process, anticipated this Monday (16) the director of the institution François Villeroy de Galhau.
“To fight inflation that is not only higher but also broader, we now have to normalize our monetary policy”, he defended, during the event.
Bank of France President Villeroy de Galhau said the pace of tightening will be “gradual” and will depend on macroeconomic data in the coming months, but should at least bring interest rates to a neutral level.
As he said, the ECB intends to monitor developments in the exchange rate. “A very weak euro would go against our price stability objective,” he said.
The official also warned of the risk that a global system based on the dominance of the dollar will be replaced by a fragmented structure – for example, with competition between the US currency and the yuan.
“In addition to this public fragmentation — or geopolitics — there is a risk of ‘private’ fragmentation through the disorderly development of crypto-assets, including the somewhat misguided ‘stablecoins'”, he criticized.
Source: CNN Brasil
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