Reaching a peak of inflation in the United States, “good news for everyone” according to the boss of the BdF

(Boursier.com) — Good news. Signs of a spike in inflation in the United States are a relief for policymakers around the world who have raised interest rates at an unprecedented pace to combat price pressures, said Francois Villeroy of Galhau. The Governor of the Banque de France speaks of a positive sign in the global battle against rising prices, as the United States has moved ahead of the inflation cycle.

“The signs of a spike in inflation – headline and underlying – in the United States last Thursday are good news for everyone,” the leader said at a Europlace conference in Tokyo. The member of the European Central Bank’s Governing Council also reiterated that he expects the ECB to slow the pace of hikes next year after bringing interest rates back to a “normalization range”. around 2% in December, against 1.5% currently.

“Beyond that, we will probably continue to raise rates, but perhaps we will do so more flexibly and perhaps less quickly,” he added, in remarks echoed by ‘Bloomberg’. “‘Jumbo’ rate hikes won’t become a new habit.”

F. Villeroy de Galhau also asserted that the ECB will focus more on inflation measures that exclude the impact of energy and food: “a favorable condition to halt rate hikes would be clear signs of a reversal in the trend of underlying inflation”.