Rates should remain at this level for sufficiently long period of time

In a CNBC interview on Monday, European Central Bank (ECB) Governing Council member and Bank of France President, Francois Villeroy de Galhau, said that “interest rates should remain at this level for a sufficiently long period of time.”

Additional takeaways

What we see now is a slowdown but still with positive growth.

Positive growth expected for 2024-25.

I have less fear about the economy than I did a year ago.

Inflation should come back towards the 2% target by 2025 while avoiding recession for the economy.

Market reaction

The ECB commentary fails to move the needle around the Euro, as EUR/USD continues to waver in a tight range near 1.0650 so far this Monday.

Source: https://www.fxstreet.com/news/ecb-villeroy-rates-should-remain-at-this-level-for-sufficiently-long-period-of-time-202309250842