ECB’s Villeroy: Latest Inflation Data Confirm Appropriateness of Key Interest Rates

29 September 2023

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Friday said that the ECB’s interest rates were at the correct level.

In a post on LinkedIn, Villeroy, who heads the Banque de France, said that data released earlier in the day ‘show that headline and core inflation are gradually falling across Europe, underlining the effectiveness of the European Central Bank's monetary policy.’

‘In France too, we are seeing a marked fall in core inflation, to 3.6%, and particularly in services inflation’, he continued. ‘These data reinforce our confidence that inflation in the Eurozone and France will return to its 2% target by 2025, confirming that our current key interest rates are appropriate.’

‘Recent volatility in the long-term bond market has been somewhat excessive’, he added.