The ECB could reach the neutral level of interest rates – which it has placed around 2% – by the end of the year, the head of the Central Bank of France said
Bond prices in the eurozone are falling today, as expectations for a rapid increase in interest rates from the European Central Bank seem to be consolidating.
In this spirit, the head of the Central Bank of France and member of the ECB’s board Francois Villeroy also acted today.
As he mentioned in his statements, the ECB could reach the neutral level of interest rates – which he placed around 2% – by the end of the year. It is recalled that the key interest rate of the ECB today after two increases is at 1.25%.
He clarified that the ECB will proceed with further measures to limit the monetary policy, after reaching a neutral interest rate level, only if this is deemed necessary.
In HDAT, transactions of 93 million euros were recorded, of which 55 million euros related to purchase orders. The yield on the 10-year bond stood at 4.32% from 4.20% yesterday against 1.72% of the corresponding German bond, resulting in the spread at 2.60% from 2.49%.
In the foreign exchange market, the dollar strengthened against the euro with the European currency trading at $0.9982 in the early afternoon from $0.9978 at the market open. The indicative price for the euro/dollar exchange rate announced by the ECB was 0.9990 dollars.
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