Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

ECB’s Villeroy: rate hike signals strong confidence in European banks

Published On :

PARIS (Reuters) – The European Central Bank’s decision to raise interest rates by half a point on Thursday reflects the central bank’s priority of fighting inflation and also signals strong confidence in the solidity of European banks, French ECB policymaker Francois Villeroy de Galhau said on Friday.

“French and European banks are very solid,” Villeroy, who is also governor of the French central bank, said on BFM business radio.

A rout in global markets triggered by last week’s collapse of Silicon Valley Bank (SVB) and made worse by doubts around the future of Switzerland’s Credit Suisse had prompted some to question whether the ECB would pause its rate-hiking cycle.

In line with its often-repeated guidance, the central bank for the 20 countries that share the euro lifted its deposit rate to 3% – the highest level since late 2008 – as inflation is seen overshooting its 2% target through 2025.

I think we sent a signal of confidence that is strong and dual. It reflects both confidence in our anti-inflation strategy and confidence in the solidity of European and French banks,” Villeroy said.

While the ECB had “the tools to ensure the liquidity of banks”, Villeroy said it was unlikely it would have to use them as “European banks are not in the same situation as U.S. banks”.

 

(Reporting by Dominique Vidalon; Editing by Benoit Van Overstraeten; Editing by Toby Chopra)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts