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MNI BRIEF: ECB Hikes Done By September Latest - Villeroy

(MNI) London

The ECB could continue hike rates or pause at any of the three upcoming monetary meetings, Banque de France governor Villeroy said in a speech Monday, adding that policymakers finally reaching peak rate “not later than by the summer.”

With rates already “clearly” in restrictive territory, Villeroy called for “patience and consistency,” amid suggestions the lag in transmission of policy to the real economy “may be at the upper end of the two-year range.” (MNI SOURCES: Most At ECB See 4% Rate As Only Outside Chance)

"We have three possible Governing Councils either for hiking or pausing but don’t deduce a guidance from this or a preference for a given terminal rate," Villeroy said, noting that Summer could be anytime from June until September.

We will remain data driven, looking meeting by meeting at the outlook for headline inflation as well as for the dynamics of underlying inflation and the strength of monetary policy transmission.”

MNI Frankfurt Bureau | +49-69-720-146 |
MNI Frankfurt Bureau | +49-69-720-146 |

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