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5/24, 10:43 AM (Source: TeleTrader)
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ECB's Villeroy: Neutral rate between 1% and 2%

Bank of France Governor Francois Villeroy de Galhau spoke on Tuesday about the upcoming interest rate hikes from the European Central Bank, arguing that a 50 basis point increase isn't part of the ECB's current consensus.

However, Villeroy yesterday noted that rate hikes at the next two ECB meetings in July and September are "likely a done deal," with markets expecting 25 basis points hikes in each meeting. The neutral rate stands between 1% and 2%, he added.

ECB President Christine Lagarde revealed a similar assessment during yesterday's remarks, saying the ECB plans to exit negative rates by the end of the third trimester of 2022.

Baha Breaking News (BBN) / ND