Banque de France’s Bénassy-Quéré: ECB’s Monetary Policy Well Suited for France

29 July 2024

By Isabel Teles – FRANKFURT (Econostream) – The similarities between the French and the euro area’s economies make the single monetary policy a good fit for France, Agnès Bénassy-Quéré, Banque de France’s Deputy Governor, said Monday.

In a blog post on the website of the Banque de France, Bénassy-Quéré said, ‘The French economy benefits from the fact that it is very similar to that of the euro area as a whole, both in terms of inflation and the economic cycle. The ECB's single monetary policy, designed to meet the aggregate needs of the euro area, therefore is very likely to be appropriate for the French economy.’ 

From an economic perspective, France benefitted from being a ‘median’ country among its euro area peers, she said.

‘[The euro] has served the needs of the French economy well since monetary unification, both on average (with much lower interest rates than before the euro) and in variation (with a monetary policy particularly well suited to the French economy)’, she said.