ECB Governing Council member Francois Villeroy de Galhau reiterated to BFM business radio, “we have said that if the rise in interest rates were to start, it would be very gradual. We have decided to lift our foot off the accelerator … but there is not the automaticity we seen in other central banks.”
Villeroy also dismissed the idea that rising commodity prices could drag Eurozone into recession. He said, “growth remain positive, there is no recession.” Meanwhile, he expected inflation to “get back down to around 2%” from from the current 5.1% level.
Another Governing Council member Olli Rehn echoed, “any adjustments to the key ECB interest rates will take place some time after the end of the APP net purchases and will be gradual.”
