On October 23, the European Central Bank Governing Council Villeroy said on Tuesday that there is a possibility that inflation is lower than the Central Bank's 2% target, especially if the economic rise is still sluggish, then the European Central Bank may face the risk of acting too late when withdrawing from past interest rate hikes. We are not behind the curve, but flexibility should prevent us from taking such risks, Villeroy said. The risk of curtailing restrictive positions too late may indeed become greater than the risk of moving too quickly. He called for flexible pragmatism to further reduce the Central Bank's restrictive tendencies. Villeroy also said: "If we keep inflation at 2% next year and the European RISE outlook remains subdued, we have no reason to remain restrictive in monetary policy and our Intrerest Rate will be higher than the neutral Intrerest Rate." In addition, he believes that the eurozone economy will still be particularly weak, and there is no reason to expect the economy to The Moon, even if soft landing is most likely. He hinted that the slow rise that lasted for two years could continue.
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European Central Bank Governor Villeroy:
On October 23, the European Central Bank Governing Council Villeroy said on Tuesday that there is a possibility that inflation is lower than the Central Bank's 2% target, especially if the economic rise is still sluggish, then the European Central Bank may face the risk of acting too late when withdrawing from past interest rate hikes. We are not behind the curve, but flexibility should prevent us from taking such risks, Villeroy said. The risk of curtailing restrictive positions too late may indeed become greater than the risk of moving too quickly. He called for flexible pragmatism to further reduce the Central Bank's restrictive tendencies. Villeroy also said: "If we keep inflation at 2% next year and the European RISE outlook remains subdued, we have no reason to remain restrictive in monetary policy and our Intrerest Rate will be higher than the neutral Intrerest Rate." In addition, he believes that the eurozone economy will still be particularly weak, and there is no reason to expect the economy to The Moon, even if soft landing is most likely. He hinted that the slow rise that lasted for two years could continue.