ECB governor François Villeroy de Galhau told French daily Les Echos that investors have “overreacted” to ECB communication since last week.
“There is an excess of volatility in the terminal rate expectations,” he said. “Put differently, markets have overreacted a little since Thursday.”
Villeroy also noted that while interest rate could peak by the end of summer, ECB is “in no way” obliged to raise borrowing costs at every meeting between now and September.
