ECB should raise rates to neutral ‘without hesitation’ – Villeroy de Galhau

Banque de France governor expects energy prices to have peaked in September

François Villeroy de Galhau

Banque de France governor François Villeroy de Galhau said the European Central Bank should continue increasing rates to get to the neutral level by the end of 2022.

The member of the ECB’s governing council estimates the eurozone’s neutral rate of interest is “below or close to 2%”. In order to address rising inflation, “we should go there without hesitation, by the end of the year”, he said in an interview published on October 4.

The ECB policy rate stands at 0.75%. Most observers expect the

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