ECBs Villeroy
- Sees rates peaking in the summer
- How long rates are kept at the terminal rate is key
- The central question for rate cuts is the return of inflation outlook to 2% target
There isn't anything new in his comments but he is forgetting a little that if the economy does suffer a deeper recession than expected, that could also bring rate cuts on to the table much quicker than anticipated. For now though, policymakers are of course dismissing that idea; how typical.
