Bank of France Governor Emmanuel Moulin said the central bank will make interest rate decisions meeting by meeting, rather than committing to a longer-term path.
Moulin was somewhat upbeat about the prospect that the French government could achieve significant fiscal consolidation over the coming years. He indicated that progress on reducing the budget deficit would be an important factor in the economic outlook.
His remarks reflect a cautious approach by the central bank, which is watching incoming economic data closely before signaling any change in policy. Markets have been sensitive to the balance between inflation pressures and growth, and officials have avoided pre-committing to a specific direction.
The comments were reported by the Wall Street Journal Markets desk, which noted that the governor's tone was measured rather than definitive. Investors will be looking for further clarity from upcoming policy meetings and from any updated projections on inflation and public finances.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing