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5/6, 11:12 AM (Source: TeleTrader)
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Reasonable to raise rates to positive by end of year - ECB's Villeroy

Governing Council of the European Central Bank (ECB) Member Francois Villeroy de Galhau said on Friday that it is "reasonable" to raise interest rates to positive territory by the end of 2022. He added that the neutral nominal rate in the euro area is seen between 1% and 2%, and noted that real rates are expected to stay "significantly negative and below neutral for some time."

On inflation, the Bank of France governor said expectations are less and less anchored at 2% now. He warned the ECB must carefully monitor exchange rate developments as a weak euro could jeopardize the bank's price stability objective.

Baha Breaking News (BBN) / DJ