By
Reuters
Printed
November 26, 2024
The brand new Trump administration’s financial insurance policies within the U.S. might have a “relatively limited” impact on European inflation however may have a extra noticeable impression on long-term rates of interest, ECB policymaker Francois Villeroy de Galhau mentioned on Tuesday.
Villeroy, who’s head of the French central financial institution, mentioned that President-elect Donald Trump’s plans to hike tariffs and minimize taxes elevated dangers for the world economic system, including to U.S. inflation and weighing on progress overseas.
“The inflation effect could be relatively limited in Europe, however long-term interest rates set by the market have a certain tendency to cross the Atlantic,” Villeroy instructed a retail investor convention in Paris.
“I don’t think it changes much for European short-term rates, but long-term rates could see a transition effect,” he added.
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