MNI BRIEF: May Be More Hikes But Limited Size, Number-Villeroy

There may be more rate hikes to come from the ECB but said these would be limited in both size and in number, Bank of France Governor and ECB Governing Council Member Francois Villeroy said Monday.

In an interview with Le Figaro newspaper, Villeroy said that the main impact on inflation to come would be from past hikes, adding most of the “journey” has now been done:

“The main impact to come for the economy is linked to what is already in the pipe: we have done most of the journey. There may be need for some additional increases, but they must, in my view, be limited in their number and their size.”

“Being more moderate on the level does not however mean we will be less determined on the duration: we will keep rates at the correct level for as long as necessary to beat inflation, he added.”(MNI SOURCES: ECB To Hold Rates At Peak Into 2024)

The ECB’s next rate decision is expected on May 4.