Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

ECB’s Villeroy Says Resilient Economy Makes Rate Hikes Easier

Published 01/18/2023, 04:25 AM
© Reuters.

(Bloomberg) -- European Central Bank Governing Council member Francois Villeroy de Galhau said the resilience of the continent’s economy in the face of the energy crisis makes ramping up interest rates less complicated.

“The good resistance of the economy today gives us the means to raise rates in a pragmatic, reasonable way, and therefore to beat inflation,” Villeroy told French TV channel BFM Business on Tuesday evening. 

The Bank of France chief reiterated that borrowing costs must continue to rise, with the fight against inflation that only recently retreated from double digits not over yet.

Hope is building that the 20-member euro zone could dodge a recession after stronger-than-expected data last week from its largest member, Germany.

Mario Centeno, a colleague of Villeroy at the ECB, told the World Economic Forum in Davos earlier Tuesday that Europe’s economy is doing surprisingly well, and that the battle with inflation will continue.

“We should still have slightly positive growth for France,” Villeroy said. “So the priority is really beat this inflationary threat and things have got going well.”

©2023 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.