- Analytics
- News and Tools
- Market News
- ECB's Villeroy: ECB rate move hinges on downturns duration
ECB's Villeroy: ECB rate move hinges on downturns duration
The timing of the ECB’s first post-crisis rate hike hinges on whether the euro zone’s current slowdown is a blip or a more protracted downturn, ECB policymaker Francois Villeroy said.
Asked in an interview with Spanish newspaper El Pais whether recent data reduced chances for a hike after summer, Villeroy said the ECB would scrutinize the flow of economic data.
“The key question will be if the slowdown is temporary — with a bounce-back during this year — or more durable,” said Villeroy.
He added that there was a strong convergence of views within the ECB’s rate-setting Governing Council about the sequencing of its next policy steps and flexibility about the timing.
Villeroy said that resilient domestic demand in Germany, France and Spain was keeping the risk of recession at bay although the outlook was clouded by the threat of protectionism worldwide and Brexit in Europe. Against that economic backdrop, he said the ECB would be “pragmatic” in its use of its three main policy tools: its stock of assets, interest rates and liquidity provisions.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
