"I think we sent a signal of confidence that is strong
and dual. It reflects both confidence in our anti-inflation
strategy and confidence in the solidity of European and French
banks," Villeroy said.
While the ECB had "the tools to ensure the liquidity of
banks", Villeroy said it was unlikely it would have to use them
as "European banks are not in the same situation as U.S. banks".
(Reporting by Dominique Vidalon; Editing by Benoit Van
Overstraeten; Editing by Toby Chopra)
(adds details, quotes)
PARIS, March 17 (Reuters) - The European Central Bank's
decision to raise interest rates by half a point on Thursday
reflects the central bank's priority of fighting inflation and
also signals strong confidence in the solidity of European
banks, French ECB policymaker Francois Villeroy de Galhau said
on Friday.
"French and European banks are very solid," Villeroy, who is
also governor of the French central bank, said on BFM business
radio.
A rout in global markets triggered by last week's collapse
of Silicon Valley Bank (SVB) and made worse by doubts around the
future of Switzerland's Credit Suisse had prompted some to
question whether the ECB would pause its rate-hiking cycle.
In line with its often-repeated guidance, the central
bank for the 20 countries that share the euro lifted its deposit
rate to 3% - the highest level since late 2008 - as inflation is
seen overshooting its 2% target through 2025.
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