ECB’s Villeroy: Inflation should get back down to around 2%

ECB’s Villeroy: Inflation should get back down to around 2%

  • There is no recession in Europe
  • We are lifting the foot from the accelerator without stepping on the break (regarding inflation response)
  • Other central banks are taking much harder line on response to inflation
  • There is no automatic function that will lead to lifting rates
  • ECB will take as much time as necessary to examine any rate hike decision

The ECB decided to take a step towards added rate hike flexibility by scheduling the end of asset purchases in Q3 yesterday. But Villeroy’s remarks above doesn’t sound like someone who is too interested in pushing for rate hikes too strongly.

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