According to Villeroy, Lagarde’s 50 basis point steering still applies

Francois Villeroy de Galhau, Member of the European Central Bank (ECB) Administrative Board and President of the French Central Bank, said in an interview with Bloomberg in Davos that 50 basis points increases in borrowing costs will continue.

Speaking to Bloomberg at the World Economic Forum held in Davos, Bank of France President Villeroy said that ECB Leader Lagarde’s 50 basis point verbal guidance is still valid.

Stating that it is too early to talk about the rate hike measure at the March meeting, Villeroy said, “We have clearly said that we will make decisions on a meeting basis. We are information-oriented, so it is early to say what we will do at the March meeting. I would like to remind the words of Leader Lagarde at the December meeting; “We can expect an increase in interest rates. These words are still valid today,” he said.

Villeroy also repeated his statement that the peak level of interest should be reached in the summer, saying, “Last year, ‘speed’ was valuable, this year ‘level and process’ will be valuable.” said.

The ECB realized the highest rate hike series in its history with a total of 250 basis points last year. Economists surveyed by Bloomberg predict that the deposit rate, which is currently 2 percent, will peak at 3.25%.