Villeroy of the ECB: it is reasonable to raise rates into positive territory by the end of the year

Inflation expectations are less and less anchored at 2% now The evolution of exchange rates must be monitored A euro that is too weak compromises the objective of price stability The remark in the title is quite hawkish, even for the standards of Villeroy. This suggests about three rate hikes by the ECB until the end of the year – likely in July, September and December. ECB policymaker Olli Rehn also endorsed a similar view here and that also adds to recent remarks by Holzmann (a known hawk).


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