Good news. Signs of a spike in US inflation are a relief to policymakers around the world who have been raising interest rates at an unprecedented pace to combat price pressures, said Galhau’s Francois Villeroy. The Governor of the Banque de France speaks of a positive sign in the global battle against rising prices, as the United States has anticipated the cycle of inflation.
“Signs of a spike in inflation – headline and underlying – in the US last Thursday are good news for everyone,” the leader said at a Europlace conference in Tokyo. The European Central Bank Governing Council member also reiterated that he expects the ECB to slow the pace of hikes next year after it brought interest rates back into a “normalizing range”, around 2% in December. against the current 1.5%.
“Beyond that, we’ll probably continue to raise rates, but maybe we’ll do it more flexibly and maybe less quickly,” he added, in comments echoed by “Bloomberg.” “Jumbo rate hikes are not going to become a new habit.”
F. Villeroy de Galhau also stated that the ECB will focus more on inflation measures that exclude the impact of energy and food: “a favorable condition to stop rate hikes would be a clear signal of a trend reversal in the underlying inflation”.
