ECB rate decisions stay data-driven, not date-driven
Updated
Updated · The Wall Street Journal · May 7
ECB rate decisions stay data-driven, not date-driven
8 articles · Updated · The Wall Street Journal · May 7
Bank of France Governor Francois Villeroy de Galhau said on Thursday the ECB cannot commit to a June rate rise after markets inferred one from last week's meeting.
He said policymakers will watch core inflation, household and business inflation expectations, and wages; ECB figures on Wednesday showed wage growth slowing this year while core inflation remains subdued.
In a final monetary policy speech before leaving at month-end, Villeroy said central bank credibility helped curb past inflation shocks and warned attacks on central bank independence could unanchor expectations.
With conflicting economic signals, what specific data point would finally force the European Central Bank to change its interest rate policy?
As stagflation grips Europe, is the ECB's rate-hike pause a prudent strategy or a dangerous gamble with future inflation?
Amid rising political critiques, can the ECB maintain its independence while navigating Europe's worsening economic storm?