ECB Official: The European Central Bank Will Keep Interest Rates At 4% As Long As Necessary

On September 19, ECB Governing Council member Francois Villeroy de Galhau said that as long as it is necessary to fight inflation, the European Central Bank will keep interest rates at 4%. This suggests that he currently does not favor further interest rate increases. This comes after the European Central Bank raised borrowing costs for the 10th time in a row last week, despite objections from cautious officials. President Christine Lagarde said she could not say whether this would be a peak, and hawkish officials have since stressed that this may not be the last rate hike. Villeroy said persistence is the key to overcoming inflation.