ECB Governing Council member Francois Villeroy de Galhau said in a Dutch newspaper NRC interview, “we will raise interest rates as much as necessary to bring core inflation down.”
Villeroy added that ECB should continue raising interest rates, “without hesitation”, to neutral “by the end of the year”. He estimates that neutral a somewhere “below or close to 2%”.
“I don’t say that rate hikes will stop there, but we will have to comprehensively assess the inflation and economic outlook,” he added.
