ECB’s Villeroy: No More Interest Rate Hikes Except in Case of External Shocks
9 November 2023
By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Thursday said that if it there were no more surprises or shocks, the ECB would not raise interest rates further.
In an interview with French Radio Classique, Villeroy, who heads the Banque de France, said that ‘our interest rates, barring any surprises or external shocks, will not increase any further.’
Petrol prices were one of the elements that could surprise, he said, due to the uncertainty of the situation in the Middle East.
‘There are still volatilities, but regarding the long-term, the tendency is very clearly downward’, he said.
It was still soon to discuss cutting interest rates, he said, but the moment for such a discussion would come ‘when everyone is convinced that inflation will come back to 2%.’
Looking at the domestic situation, he said that the inflation peak had passed in France and that there was currently no recession in the country.