FRANKFURT, Feb 22 (Reuters) - Investors betting on more
interest rates hikes by the European Central bank have
'overreacted' to strong U.S. data and ECB communication since
last week, the Banque de France Governor said in an interview
published on Wednesday.
"There is an excess of volatility in the terminal rate
expectations," François Villeroy de Galhau told French daily Les
Echos. "Put differently, markets have overreacted a little since
Thursday."
Villeroy said that peak interest rates could be reached by
the end of the summer but the ECB was under no obligation to
raise rates at each of its meetings until September.
(Reporting By Francesco Canepa)
004906975651247; Reuters Messaging:
francesco.canepa.thomsonreuters.com@reuters.net))
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