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ECB's Villeroy: Inflation is a disease, rates medicine starting to work

Published 19/09/2023, 08:08
© Reuters. Bank of France Governor Francois Villeroy de Galhau delivers a speech during the annual meeting of Small and Medium-sized Enterprises leaders at the Bank of France in Paris, France, October 22, 2021. REUTERS/Sarah Meyssonnier/File photo
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PARIS (Reuters) - The European Central Bank will maintain its interest rates at 4% for a sufficiently long time in its bid to bring down inflation, ECB policymaker Francois Villeroy de Galhau said on Tuesday.

© Reuters. Bank of France Governor Francois Villeroy de Galhau delivers a speech during the annual meeting of Small and Medium-sized Enterprises leaders at the Bank of France in Paris, France, October 22, 2021. REUTERS/Sarah Meyssonnier/File photo

"Inflation is a disease and rates are the medicine. The medicine is starting to work.... We think 4% is a good level. We need to maintain the rates at 4% a sufficiently long time," Villeroy de Galhau, who is also the governor of the French central bank, told BFM television.

The ECB raised its main interest rate earlier this month to a record high 4% and signalled its latest hike was likely to be the last as the euro zone's economy slows.

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