ECB's Villeroy expects the Bank's interest rates to peak soon, and plateau for a long time

<p>Bank of France Governor and European Central Bank Governing Council member Francois Villeroy spoke over the weekend at an economics conference.</p><p>Villeroy said that while ECB rate hikes were close to peaking, rates would be kept at elevated levels long enough for the impact to feed through the economy.</p><ul><li>"In the euro area, I believe we will soon reach the high point of interest rates."</li><li>"But when I say high point this isn't a peak, rather it will be a high plateau, on which we will have to remain for a sufficiently long time to fully transmit all the effects of monetary policy."</li></ul><p>The ECB next meet on July 27 with a +0.25% rate hike all but set in concrete. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.