ECB to start raising interest rates gradually from summer: Villeroy

“I think that from this summer onwards, the ECB will gradually raise its interest rates,” Villeroy de Galhau told France Inter radio.

He said he expected inflation to remain “high” for the rest of 2022 but added that inflation should get back down to around the 2 per cent level by 2024.

Germany’s Bundesbank chief, Joachim Nagel, said earlier this week that the ECB should raise interest rates in July to stop high inflation becoming entrenched, joining an already long line of policymakers calling for quick rate moves.

Madis Müller, Estonia’s central bank governor, said the ECB could outline its rate expectations for the coming months at its June 9 meeting.