Bank of France head and European Central Bank governing council member Francois Villeroy de Galhau said on Monday that a deal on rate hikes in the near term is probably done, reported Reuters. His remarks come after ECB President Christine Lagarde said in a Monday blog post that the ECB would likely lift rates out of negative territory by the end of September. 

Villeroy added that Eurozone growth remains resilient, with the main short-term problem being inflation. Because of a broadening of inflationary pressures, he continued, the ECB must normalise monetary policy to get inflation back to 2.0%. The ECB is set to normalise policy, he emphasised, not tighten it.  

Earlier in the day, the May German IFO survey came in stronger than expected.  

This article was originally published by Fxstreet.com.Read the original article here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here