- Inflation expectations are less and less anchored at 2% now
- Must watch exchange rate developments
- Too weak a euro jeaopardises price stability objective
The headline remark is quite a hawkish one to make, even for Villeroy's standards. That suggests roughly three rate hikes by the ECB through to the end of the year - presumably being in July, September and December. ECB policymaker, Olli Rehn, also endorsed a similar view here and that adds to Holzmann's (a known hawk) recent remarks as well.
