“ We remain ready to maintain, for as long as necessary, a very accommodating monetary stance, adjusting all our instruments, if necessary, including lowering the deposit rate. François Villeroy de Galhau, who presented the Banque de France’s annual report on financial stability on Monday afternoon, reassured the markets after the sharp rise in interest rates in recent times. A message that comes as the latest figures released by the ECB show that it reduced from 17 to 12 billion euros the purchases of its emergency program (PEPP) last week. “ Insofar as this (monetary) tightening is unwarranted, we can and must react, starting with active flexibility in PEPP purchases. », He hammered.
For the governor of the Banque de France, there are some signs of a recovery in inflation expectations, which is rather good news. “ However, this increase should not be overestimated; it mainly reflects temporary factors rather than a persistent and significant change in the path of inflation. […] There is no risk of overheating in Europe “, He tempered, recalling that the past inflation deficits could not be completely forgotten, and that in the future it was necessary” be prepared to accept inflation above target for a period of time “.