They will remain high for “enough time” to keep inflation under control, as warned by Bank of France president François Villeroy de Galhau.
The interest rate hikes of the European Central Bank (ECB) will soon come to an end, but it will not be a “peak” but a “plateau” to keep inflation under control, as warned today by the President of the Bank of France, François Villeroy from Galhau.
“Soon we will reach the highest point of interest rates in the Eurozone,” but “it will not be a peak, but rather a high plateau that we will have to stay at long enough” to keep inflation under control, he said. explained.
Villeroy de Galhau said these words at a colloquium of presidents of European central banks (Spain, Portugal and England) at the Economic Meetings of Aix en Provence, the economic forum that ended today in that city in southeastern France.
Despite the “plateau” of high interest rates, the head of the Bank of France is confident that “we will bring inflation below 2% by 2025, both in France and in the Eurozone”, and also “no recession”.
While he has acknowledged that “we have passed the peak of inflation”, Villeroy de Galhau has warned that central banks do not have a “magic wand”. “We don’t have the power to solve crises without pain,” he assured.
Pablo Fernández de Cos, governor of the Bank of Spain, recalled that European central banks “have been fighting different crises for about fifteen years.
For this reason, he has chosen “to achieve a better political balance to combat these crises”, and within this idea he has defended “a prudent fiscal policy within the European Union”.
Source: EITB
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