PARIS (Reuters) – The governor of the Banque de France, François Villeroy de Galhau, said he did not see “clear signs in France of a recession or a general turnaround in activity” even if there is “unquestionably a slowdown” .
“The trend is weakly positive growth,” said François Villeroy de Galhau on BFM Business, reaffirming that the BdF was even going to raise its growth forecast for France a little in 2023, currently 0.7%.
“I am not worried, but I am vigilant. I believe that it is now desirable that the production of mortgage loans stabilizes and then gradually starts up again,” said François Villeroy de Galhau.
“In the euro zone as a whole, we do not see a recession” either, added the governor of the Banque de France and member of the Governing Council of the European Central Bank (ECB).
François Villeroy de Galhau reiterated that the ECB was keeping its options open for its next monetary policy council, on September 14, and the following council.
“But we are close or very close to the high point in interest rates,” he said, noting “early successes” in the battle against inflation.
“Today, maintaining rates long enough matters more than increasing them significantly. Distance running matters more than altitude.”
(Written by Jean-Stéphane Brosse, edited by Tangi Salaün)
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