ECB’s Villeroy: Rate hike call not needed before June
Member of the European Central Bank (ECB) Governing Council Francois Villeroy de Galhau expressed on Tuesday his belief the final decision on raising interest rates will not need to be made before the institution’s next meeting in June.
Speaking in an online call with the London School of Economics, Villeroy said the ECB will likely end its Asset Purchase Programme (APP) in the third quarter of the year and manage to avoid a hike in interest rates after that. He also called for a gradual change of policies characterized by “optimality” when it comes to the pace of “normalization” of the economy, still struck by the crisis caused by the COVID-19 pandemic.
Villeroy recently estimated the Eurozone is “very near to the peak in inflation” and said the ECB is ” taking the appropriate measures so that inflation is around 2%.”
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