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ECB's Villeroy says: expect a gradual but sustained rate hike

reuters.com · 06/10/2022 01:48
ECB's Villeroy says: expect a gradual but sustained rate hike

- There will be a "gradual but sustained" hike in European interest rates from September until what economists call "the neutral rate", French policymaker Francois Villeroy de Galhau said on Friday.

Villeroy told BFM Business radio the "neutral rate" was "somewhere between 1% and 2%", adding the ECB might even go beyond that level.

The European Central Bank on Thursday said it would end quantitative easing on July 1, then raise interest rates by 25 basis points on July 21. It will then hike again on Sept. 8 and go for a bigger move, unless the inflation outlook improves in the meantime.nL1N2XW0AB


(Reporting by Dominique Vidalon; Editing by Benoit Van Overstraeten)

((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net))