The head of economic policy at the European Central Bank (ECB), Francois Villeroy de Galhau, he said on Wednesday that he estimates the euro zone’s neutral rate to be below or close to 2% and added that they could reach it by the end of the year, according to Reuters.
Other statements
“Monetary normalization is fully justified in the euro area, it is too early to say what the final interest rates will be.”
“Until we reach the neutral type, we definitely have to act, in a determined but orderly way.”
“Only beyond the neutral type would hardening begin if necessary.”
“Not having a forward guidance does not mean, cannot mean, not having a narrative and a monetary strategy.”
market reaction
The EUR/USD pair showed no immediate reaction to these comments and was last seen trading at 1.0002, where it was up 0.32% on the day.
Source: Fx Street
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