European Central Bank (ECB) Governing Council member and Bank of France President, Francois Villeroy de Galhau, said on Tuesday that “we will not raise interest anymore.”
Further comments
French growth slightly revised down, but no recession as was feared a year ago.
Inflation will continue to slow down.
Growth will tick up again in 2025 and 2026 due to tamed inflation.
inflation will be at 2% by the end of 2025.
We will be able to lower interest rates.
Starting from now, wages will increase faster than prices.
Lowering of interest rates should happen “some time” in 2024.
French unemployment should go up, to between 7.5% and 8%.
Market reaction
EUR/USD is unperturbed by the above comments, holding higher ground near 1.0930, up 0.05% on the day.
Source: https://www.fxstreet.com/news/ecbs-villeroy-we-will-not-raise-interest-anymore-202312190656