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MNI BRIEF: ECB Villeroy: Higher Rates Not Needed If Infl At 2%

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MNI (WASHINGTON)
Bank of France Governor Francoise Villeroy said Tuesday that ECB rates should not be restrictive next year if the growth outlook remains sluggish and inflation is sustainably at the bank's target of 2%.
 
"On our terminal rate, it’s obviously too early to tell. However if we are next year sustainably at 2% inflation, and with still a sluggish growth outlook in Europe, there won’t be any reasons for our monetary policy to remain restrictive, and for our rates to be above the neutral rate of interest", he said in New York. 
 
With "victory over inflation in sight", Villeroy said there would be no reasons for ECB policy not to take secondary treaty objectives into account, saying that in such a situation monetary policy should not "inflict excessive or prolonged restraint on activity and employment."
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MNI (WASHINGTON)
Bank of France Governor Francoise Villeroy said Tuesday that ECB rates should not be restrictive next year if the growth outlook remains sluggish and inflation is sustainably at the bank's target of 2%.
 
"On our terminal rate, it’s obviously too early to tell. However if we are next year sustainably at 2% inflation, and with still a sluggish growth outlook in Europe, there won’t be any reasons for our monetary policy to remain restrictive, and for our rates to be above the neutral rate of interest", he said in New York. 
 
With "victory over inflation in sight", Villeroy said there would be no reasons for ECB policy not to take secondary treaty objectives into account, saying that in such a situation monetary policy should not "inflict excessive or prolonged restraint on activity and employment."