Thursday, June 1, 2023
HomeEconomyECB's next rate action should be 'orderly and predictable' - Villeroy

ECB's next rate action should be 'orderly and predictable' – Villeroy

PARIS (Reuters) – French European Central Bank policymaker François Villeroy de Garau said on Wednesday that the ECB’s interest rate changes next week must be “orderly and predictable”.

With euro zone inflation at record levels, policymakers are increasingly concerned that even long-term expectations could exceed the ECB’s 2% target. and 50 last month’s first rate hike in more than a decade after the European Central Bank raised its deposit rate by 50 bps down to zero.

“After the first rate hike in July, we will make a decision next week on our next steps. We should make up our minds, but (also) in an orderly and predictable manner way,” Villeroy said in an interview with the French regional newspaper Ouest France. The wider economy, although there is currently no sign of a wage price spiral.

Inflation in the 19 country accelerated to 9.1% against the dollar in August from 8.9% a month earlier, official data showed on Wednesday .

This was slightly stronger than expected, adding to the pressure on more dovish ECB policymakers to support 50 a basis point change next week.

Despite the current shock to energy prices, Villeroy says Europe is unlikely to be in 2022, but nothing will happen next year can not rule out.

He added that the French economy will grow at least as fast as the 2.3% predicted by the central bank in June, but it will see 2023 a sharp slowdown, Although probably not a recession.



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