Interest rates | ECB Council member: Peak interest rates during the late summer

European the peak of interest rate hikes by the central bank (ECB) will probably take place during the end of the summer of the current year, says ECB Council member, Governor of the Bank of France François Villeroy de Galhau.

Villeroy said at an event organized by the French central bank on Monday, according to the Reuters news agency, that the exact level of central bank interest rates is more important than how long interest rates will remain high.

The ECB started raising key interest rates in July last year. In the last ten months, the central bank has raised its key interest rates by a total of 3.75 percentage points.

Villeroy said that the rate hikes made at an exceptionally fast pace will probably begin to be reflected in the economy with a delay of almost two years.

According to the central banker, monitoring the transmission of interest rate increases to the economy is therefore more important than how much the central bank will raise its interest rates in future meetings.

The ECB has its next monetary policy meetings in June, July and September.

According to Villeroy, the ECB’s monetary policy council can decide either to raise interest rates or to keep interest rates unchanged at these meetings.