Bank of France Governor Francois Villeroy de Galhau argued on Friday that the Eurozone's record inflation should return to the targeted 2% range by 2024, however warning of elevated consumer price growth throughout the next year.
The governor noted that about half of the current inflation isn't linked to energy or agricultural prices, adding it is essential for French banks to keep sufficient capital in reserve. French mortgage rates remain "very favorable," he concluded.
The statement comes a day after the European Central Bank's decision to hike its key interest rates by the expected 75 points in response to record inflation readings within the euro area over the past months.
