PARIS (Reuters) – Data released on Friday on inflation in the euro zone show that the current level of interest rates from the European Central Bank (ECB) is “appropriate”, the governor of the Bank of France said on Friday, François Villeroy de Galhau.
The consumer price index calculated according to European standards (HICP) increased by 4.3% year-on-year in September in the euro zone, its lowest increase in two years.
In France, inflation remained at 4.9% this month, despite rising energy prices.
“This data reinforces our confidence that inflation in the euro zone and France will return towards its target of 2% by 2025, confirming that the current level of our key interest rates is appropriate,” declared François Villeroy de Galhau, member of the ECB Governing Council, in a message posted on the LinkedIn network.
“Recent volatility in the long-term bond market has been somewhat excessive,” he adds.
The yield on ten-year Treasuries reached its highest level since 2007 on Thursday and that of the German Bund of the same maturity reached its peak since 2011, in a context of fears of prolonged monetary tightening.
(Report by Leigh Thomas, written by Blandine Hénault, edited by Bertrand Boucey)
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