Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

No reason for the ECB to increase rates by end of next year, Villeroy says

EconomyOct 19, 2021 04:20AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Governor of the Bank of France Francois Villeroy de Galhau speaks during a news conference at the G7 finance ministers and central bank governors meeting in Chantilly, near Paris, France, July 18, 2019. REUTERS/Pascal Rossignol/File Photo

PARIS (Reuters) - There is no reason for the European Central Bank to increase rates between now and the end of 2022 as euro zone inflation is expected to fall back below the ECB's 2% target, Bank of France governor Francois Villeroy de Galhau said on Tuesday.

He also played down concerns that problems at China Evergrande Group, which faces a liquidity crisis, could have a broader impact, saying: "There will be no contagion outside China. This is a serious problem for Chinese authorities."

Villeroy, who is a member of the ECB's policy-setting governing council, told France Info radio that overall inflation in the 19-country euro zone should be back below 2% by the end of next year.

ECB President Christine Lagarde said last week that the central bank still saw Europe's inflation upswing as temporary and that there were no signs yet that the recent surge was becoming embedded in wages.

"Today, the overall inflation is a little bit above 2%. But ... I clearly believe that overall inflation will come back below 2% by the end of next year," Villeroy told France Info.

"So today there is no reason, for example, for the European Central Bank to raise interest rates next year."

Asked whether the liquidity crisis at Evergrande could lead to global contagion as the 2008 collapse of Lehman Brothers did, Villeroy said: "The main consequence is likely to be some slowdown in Chinese growth."

Property developer Evergrande, which has $300 billion of debt, has missed a series of bond payments, roiling global markets.

No reason for the ECB to increase rates by end of next year, Villeroy says
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Thum J Keong
JKThum Oct 19, 2021 5:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Truth is they CAN’T w/o blowing up their portfolio of bonds. Haha
MK MK
MK MK Oct 19, 2021 4:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Banksters should be in jail. They have created huge inflation and still try convince us that it is good
Vincenzo Dellboy
Vincenzo Dellboy Oct 19, 2021 4:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Huge inflation?! You should check the history books to see what huge inflation is!
Frank Francone
Frank Francone Oct 19, 2021 4:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
+50% in natural gas used for cars it's not huge? We need a rate hike.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email