Francois Villeroy de Galhau, Governor of Banque de France, and a Governing Council member at the European Central Bank spoke at Jackson Hole over the weekend:
- ECB needs another significant interest rate hike in September
On the neutral rate (expected to be in the 1% to 2% range, but the ECBcould go higher):
- "We could be there before the end of the year, after another significant step in September"
- "Have no doubt that we at the ECB would if needed raise rates further beyond normalization: bringing inflation back to 2% is our responsibility; our will and our capacity to deliver on our mandate are unconditional"
Other ECB speakers over the weekend:
- ECB's Kazaks says he is not happy with the lower EUR (euro)
- ECB's Schnabel says rates must be raised, even into a recession
- ECB's Rehn concerned about the falling euro: Certainly we are monitoring the exchange rate
