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PARIS (Reuters) – The brand new Trump administration’s financial insurance policies within the U.S. might have a “comparatively restricted” impact on European inflation however might have a extra noticeable impression on long-term rates of interest, ECB policymaker Francois Villeroy de Galhau stated on Tuesday.
Villeroy, who’s head of the French central financial institution, stated that President-elect Donald Trump’s plans to hike tariffs and reduce taxes elevated dangers for the world financial system, including to U.S. inflation and weighing on development overseas.
“The inflation impact might be comparatively restricted in Europe, nevertheless long-term rates of interest set by the market have a sure tendency to cross the Atlantic,” Villeroy instructed a retail investor convention in Paris.
“I do not assume it modifications a lot for European short-term charges, however long-term charges might see a transition impact,” he added.
