French Economy Minister Bruno Le Maire predicted on Monday that there will be no interest rate cut “in the coming months” given a level of inflation that is falling but remains high.
“It is not for me to make decisions on monetary policy,” but “I simply want to say very clearly to all the economic players and to all the French people who are listening to us: there will be no reduction in interest rates.” the next months”, affirmed the number two of the government in France Inter.
restrictive monetary policy
On the occasion of the meeting of central bankers in Jackson Hole, United States, the president of the European Central Bank (ECB), Christine Lagarde, recalled on Friday the will of her institution to continue with its restrictive monetary policy.
According to Christine Lagarde, the current level of inflation implies “that the ECB sets interest rates at a sufficiently restrictive level for the time necessary for inflation to return to our target of 2% over the medium term.” The ECB raised its rates for the first time in mid-July 2022, to chain eight increases since then and take them to 3.75%, a record since the spring of 2001.
consumer price
In France, consumer price inflation slowed to 4.3% year-on-year in July, but food prices rose sharply (12.7%). Inflation had exceeded 6% at the beginning of the year.
Source: BFM TV
