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ECB’s Villeroy sees rate hikes at a ‘pragmatic pace’ in coming months

PARIS – Interest rate hikes by the European Central Bank will need to come at a “pragmatic pace” in the coming months, French ECB policymaker Francois Villeroy de Galhau said on Wednesday.

After raising interest rates by 2.5 percentage points in five months, they had reached a level where they neither fuel inflation nor restrict it, said Villeroy, who is also the head of the French central bank.

“In 2023, new interest rate hikes will very likely be needed in the coming months at a pragmatic pace in order to bring inflation towards 2%,” Villeroy told the French Senate’s finance committee.

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