European Central Bank (ECB) Governing Council member and Bank of France Governor Francois Villeroy de Galhau said Tuesday that there is a high probability of initiating a "reversing" maneuver in the rate cycle in the first week of June.
"We will most likely start reversing the rate cycle next week," Vilerroy said during an event by the Prudential Control and Resolution Authority of the Bank of France.
Moreover, he advised that the implementation of the Basel III international standards for banks "should be delayed" if a "gap" between the United States and the European banks remains. Basel III, issued by the Basel Committee on Banking Supervision in Switzerland in November 2010, was initially set for implementation between 2013 and 2015. However, due to multiple extensions and the COVID-19 pandemic, its enforcement was set for January 1, 2023.
