That’s an interesting comment because yesterday Stournaras was talking about 6 or 12 months at the peak. That’s a wide window and highlights that the next big debate the ECB will have isn’t a September hike (assuming July) but when to start signalling lower rates.
- Future rate decisions to depend on inflation data
- Inflation is past the peak in France and the eurozone
Meanwhile, the Bank of France forecasts 2023 GDP at +0.7% vs +0.6% previously and just 1.0% in 2024, down from 1.25%. Inflation is seen at 2.4% in 2024 and 1.9% in 2025. None of these numbers are arguments for keeping rates high for long.
The comments were from an interview in Los Echos.
This article was written by Adam Button at www.forexlive.com. Source