Interest rate exit from ECB member: At the right level

The President of the Bank of France and a member of the Executive Board of the European Central Bank, Francois Villeroy de Galhau, said that interest rates are at the right level at this stage. While there were dovish messages from monetary policy officials in the US, statements in this tone were also followed on the other side of the Atlantic. The President of the Bank of France and a member of the Executive Board of the European Central Bank (ECB), Francois Villeroy de Galhau, reiterated the messages he gave last week that there was no reason for the ECB to continue monetary tightening at the moment and that it should keep interest rates at a plateau for as long as necessary. Speaking to France Info radio, Villeroy said, "After raising interest rates very high, I think we are now at the right level, at the right dose. Unless there is a decline or new data, I do not think it is desirable to raise ECB interest rates further." Stating that there was still a clear downward trend in inflation, Villeroy said, "We estimate that inflation will fall to 2 percent by 2025 - we do not see any reason to change this decline today." Villeroy also made an assessment of the geopolitical tensions affecting commodity markets. The European Central Bank will be careful about oil prices due to the conflict between Israel and Hamas, according to Francois Villeroy de Galhau.