© Reuters. FILE PHOTO: Francois Villeroy de Galhau, Governor of Banque de France, attends the Paris Europlace International Financial Forum in Paris, France, July 12, 2022. REUTERS/Benoit Tessier
PARIS (Reuters) – Future interest rate increases by the European Central Bank will not necessarily be ‘jumbo’ increases as the one done yesterday, ECB member and Bank of France head Francois Villeroy de Galhau told a webcast hosted by financial site Boursorama.
On Thursday, the ECB raised interest rates again and put the reduction of its bloated balance sheet on the agenda, but said “substantial” progress had already been made in its bid to fight off a historic surge in inflation.
The central bank for the 19 countries that use the euro raised its deposit rate by a further 75 basis points to 1.5% – the highest rate since 2009. ECB rates had been negative – below 0% – for eight years until it hiked in July.