The European Central Bank (ECB) will bring inflation back to its 2% target by next year, despite expected “noise” in this year’s monthly data, ECB Governing Council member François Villeroy de Galhau said on Tuesday .
The ECB cut rates by 0.25 percentage points from last week’s all-time high, but did not commit to further cuts amid high wage growth and a further rise in inflation projections.
The monthly flow of inflation data would be volatile due to the base effect of comparative energy data, Villeroy said at a financial conference in Paris.
“This ‘noise’ is not very significant and therefore we are even more ‘outlook-oriented’ and will look even more closely at inflation forecasts,” Villeroy said.
“We remain confident that, barring an external shock, we will be able to get inflation back to our 2% target by next year, and that we will achieve this with a soft, not hard, landing,” he added.
Villeroy, who is also president of the French central bank, reiterated his call for a gradual approach to future rate changes and said the ECB has “significant room for manoeuvre” to make cuts before monetary policy turns restrictive.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
