ECB needs ‘persistence’ in tight policy, French governor says

Transmission is slow but rate should reach terminal level in summer, says Villeroy de Galhau

François Villeroy de Galhau

Monetary policy transmission in the eurozone will be over two years, Banque de France governor François Villeroy de Galhau said in a speech on May 25.

The European Central Bank will have to keep interest rates high for longer to bring inflation down to the 2% target by 2025. “Persistence is now more important than speed; the duration for which we will maintain rates is now more important than the precise terminal level we will reach,” he told the ICMA conference in Paris.

The French governor

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account