BRIEF:ECB Villeroy: Market Rate Expectations Pretty Reasonable

MNI (BRUSSELS) - Market rate expectations for the ECB rate outlook look "pretty reasonable", Bank of France Governor Francois Villeroy told BFM TV Friday. 

He said that the ECB would remain data dependent when asked about what the ECB might decide to do in September, but noted that the Governing Council would be much more focused on its own projections for 2025 and 2026 than on the data "fluctuations of 2024".  

Inflation continues to recede as expected - "if a little more slowly...but still steadily," he said, although he accepted the outlook for economic activity and growth are more uncertain, he said.  (see MNI SOURCES: Growth Rises Up List Of ECB's Concerns) 

Turning to the current yield spread between French and German government bonds which had climbed significantly following recent political events in France, Villeroy said what matters most for markets is that the French government keeps control of public finances.