Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Villeroy: ECB Must Take "Determined" Action to Ease Inflation

Economy Sep 09, 2022 05:24AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Scott Kanowsky

Investing.com -- The European Central Bank must take "orderly but determined" action to bring inflation back down to its long-term target, according to Bank of France governor Francois Villeroy de Galhau.

Speaking to French business radio, Villeroy added that consumer price growth is expected to remain high throughout 2023 before it returns to the ECB's desired rate of 2% in 2024.

The comments come after the ECB lifted borrowing costs by 75 basis points - its largest-ever move in interest rates - and highlighted the potential of further increases to come.

The move was at the top end of expectations ahead of the Governing Council's meeting, despite concerns that the move may add to gathering headwinds facing the Eurozone economy. Many analysts - including the bank's own chief economist Philip Lane - have warned that a recession in the bloc is becoming increasingly likely due to the energy crisis sparked by the war in Ukraine and, to a lesser extent, the knock-on effects of pandemic-era stimulus.

Villeroy's colleagues echoed his sentiment on Friday, with Slovakia's central bank chief Peter Kazimir calling the unprecedented rate rise "inevitable and right," adding that even tighter monetary policy will be needed to combat inflation.

Governing Council member Klaas Knot took a similarly hawkish stance, saying that "more steps should follow" Thursday's hike. Knot also flagged that surging prices can "eat away" at consumption and investment if they are not corralled.

Villeroy: ECB Must Take "Determined" Action to Ease Inflation
 

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.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

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.
 
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
Continue with Google
or
Sign up with Email