Francois Villeroy de Galhau, Governor of Banque de France, and a Governing Council member at the European Central Bank. Speaking in the New York afternoon:
- "We now face the risk of entrenched inflation, which lies in the underlying or ‘core’ component"
- "Inflation has become more widespread, and potentially more persistent."
- monetary policy is most effective in tackling underlying or core inflation
- expects price growth back at around the ECB's 2% target by the end of 2024 or the end of 2025
- smaller steps may be more appropriate as the bank is approaching its peak or terminal rate. "We at the ECB are now moving from a 'sprint' to a 'long-distance race',"
- the inflation outlook, underlying inflation readings and the effectiveness of policy transmission will be the key factors in the next decisions
Headlines via Reuters.
