ECB’s Villeroy: Interest Rates Not Going to Increase Further

11 January 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Thursday said that interest rates had reached their terminal level.

In an interview with French broadcaster France TV, Villeroy, who heads the Banque de France, responded to a question about the weak housing market, ‘On the credit side, I believe that we are at a low point... and that it should rebound because credit rates are stabilising. The European Central Bank rates that we set are not going to increase anymore…’

Inflation would return to 2% by 2025, he said, noting again that this was a commitment rather than a certainty.

‘Having certainty in a world where we can have shocks would seem out of season, but this [return to price stability] is the commitment we make’, he said.