Ultra-low Interest Rates Ended and EU may Avoid Recession This Year

Francois Villeroy de Galhau, the ECB's governing committee and the president of the Bank of France, said that the ECB does not need to restore ultra-low interest rates as inflation in the eurozone will stabilise around 2% under the new mechanism. Villeroy told an online conference that in the short term the ECB would focus on addressing underlying inflation, which was "much higher than expected". Villeroy also believes that the eurozone economy is likely to avoid a recession this year.