The Federal Reserve cutting rates sucks up all the oxygen in the central bank conversation but elsewhere there are brewing worries about inflation that Villeroy is hinting at here.
- Current ECB good position on policy does not mean it’s a comfortable one, nor a fixed one
The market is pricing in a 25% chance of a single rate cut next year but eyes are on economic data, particularly inflation
ECB’s Villeroy: We are in a good position, not a comfortable one