ECB will probably keep raising rates beyond 2% level – Villeroy
The European Central Bank (ECB) will probably continue to raise interest rates beyond 2%, but “jumbo” rate hikes will not become a new habit, France’s central bank chief said in a speech in Tokyo on Tuesday. The ECB has increased rates at its fastest pace on record recently, hiking them by a combined 200 basis points to 1.5% in just three months. Despite that rapid pace, markets still expect the bank to hike rates further to tame sharp, broad-based inflation. Signs of peaking headline and core inflation in the United States were “good news” for everyone, he said, given that the world’s top economy had been at the forefront of the global inflation cycle.
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