ECB Governing Council member Francois Villeroy de Galhau said today, “the latest inflation figures for May, in France and in the other countries, confirm the rise that we expected, and the necessity of a gradual but resolute monetary normalization.”
Still, he emphasized that rates “that have been exceptionally accommodative for borrowers since 2015 will remain favorable and very supportive for the entire economy compared to historical norms.”
“Clarity is needed: the increase in rates in an orderly and well-managed way will be favorable for the financial sector,” Villeroy said. “It should support the profitability of French banks by increasing net activity margins.”
