PARIS (Reuters) – The brand new Trump administration’s financial insurance policies within the U.S. could have a “comparatively restricted” impact on European inflation however may have a extra noticeable influence on long-term rates of interest, ECB policymaker Francois Villeroy de Galhau mentioned on Tuesday.
Villeroy, who’s head of the French central financial institution, mentioned that President-elect Donald Trump’s plans to hike tariffs and minimize taxes elevated dangers for the world economic system, including to U.S. inflation and weighing on development overseas.
“The inflation impact could possibly be comparatively restricted in Europe, nonetheless 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 may see a transition impact,” he added.
