Inflation, growth, interest rates… Optimistic forecasts from the Banque de France

By Emma Brother

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For the governor of the Bank of France, Villeroy de Galhau, the French economy is “going in the right direction”.

There seems to be light at the end of the tunnel. “We don’t see a recession», ures this Thursday the governor of the Bank of France, François Villeroy de Galhau. The latter wants to be reuring and specifies on the microphone of Radio Clique a “slightly positive growth» for this fourth quarter, “between +0.1% and +0.2%“.

If it does not exclude a “slowdown confirmed in all sectors”, including services or buildings, “the activity more or less held“. To this is added a “jobs slowdown”but “much less» than in previous “business slowdown cycles“. “The employment situation has improved significantly» in recent weeks, adds François Villeroy de Galhau.

On the inflation side, “we are really going in the right direction», enthuses the governor of the Bank of France. At 7% a year ago,inflation is now set at 4% in October. Certainly, “he will see volatility», anticipates François Villeroy de Galhau, but “there is a downward trend over time“. Same observation for oil, which “rather tended to decrease“. “The French will feel it in the price at the pump», Promises the governor.

He also recalls the commitment of the Banque de France to bring back “inflation towards 2% by 2025“. “The disease is inflation, the cure is interest rates», underlines François Villeroy de Galhau, who recognizes that this solution “is not pleasant, but effective“. “Our interest rates will no longer rise and the day of decline will come when everyone is convinced that inflation is returning to around 2%.», he concludes.

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