In an interview with BFM television, ECB Governing Council member Francois Villeroy de Galhau emphasized the pivotal role of interest rates in curbing inflation, which he starkly referred to as a “disease.” Drawing a clear line of action against inflationary pressures, he advocated for maintaining a firm grip on the existing measures.
Villeroy underscored the effectiveness of the current strategy by stating, “Inflation is a disease and rates are the medicine. The medicine is starting to work.” T
Diving into specifics, he highlighted the appropriateness of the 4% deposit rate level, voicing his opinion that this rate should be upheld for a “sufficiently long time” to ensure that it effectively counters inflationary trends.
Looking to the future, Villeroy elucidated that once the inflation rate cools down to hover around 2% target, it would then be feasible to consider a reduction in ECB rate.
![Pinterest](https://pinterest.com/pin/create/button/?url=https://www.actionforex.com/live-comments/519242-ecbs-villeroy-advocates-for-sustained-4-deposit-rate-to-counter-inflation/&media=https://www.actionforex.com/wp-content/uploads/2018/04/f-ecb13.jpg&description=In an interview with BFM television, ECB Governing Council member Francois Villeroy de Galhau emphasized the pivotal role of interest rates in curbing inflation, which he starkly referred to as a "disease." Drawing a clear line of action against inflationary pressures, he advocated for maintaining a firm grip on the existing measures.){kind=link}