© Reuters. FILE PHOTO: Bank of France Governor Francois Villeroy de Galhau delivers a speech during the annual meeting of Small and Medium-sized Enterprises leaders at the Bank of France in Paris, France, October 22, 2021. REUTERS/Sarah Meyssonnier
PARIS (Reuters) – The European Central Bank (ECB) will start raising rates gradually this summer, ECB member and Bank of France head Francois Villeroy de Galhau told France Inter radio on Wednesday.
Inflation soared to a record high of 7.5% in the 19-nation euro currency zone last month, and as a result of this, several ECB policymakers have argued for a rate hike in July.[nL2N2X21OO]
Germany’s Bundesbank chief Joachim Nagel had also said earlier this week that the ECB should raise interest rates in July to stop high inflation becoming entrenched, joining an already long line of policymakers calling for quick rate moves.
ECB to start raising rates gradually this summer – Villeroy