ECB Must Not Exclude Any Policy Action, Says Villeroy
NeutralFinancial Markets

- François Villeroy de Galhau, Governor of the Bank of France, stated that financial market participants believe the European Central Bank's (ECB) terminal interest rate is 2%, suggesting that borrowing costs will not decrease further. He emphasized the importance of keeping all policy options open in light of ongoing inflation risks.
- This development is significant as it reflects the ECB's current stance on monetary policy amid fluctuating inflation rates, which could impact economic growth and borrowing conditions across the Eurozone.
- The situation highlights a broader concern regarding inflation stability in the Eurozone, with recent data showing inflation rates hovering around 2.2%. This uptick raises questions about the ECB's ability to maintain its target rate and the potential need for policy adjustments in response to persistent price pressures.
— via World Pulse Now AI Editorial System
