Inflation in France is falling after reaching a record rate. This is one of the good news confirmed by the Governor of the Bank of France, François Villeroy de Galhou on Sunday 28 January. The financial manager also announced a Bank of France rate cut in 2024 without giving a specific date.
So France’s economic situation is improving after several months of difficulties. The downward trend in inflation is confirmed and allows the Banque de France to leave rates. ” We will be lowering our rates this year », assured, this January 28, in an interview given to the Governor newspaper La Tribune Sunday.
Rates to drop in 2024
” We have to avoid two risks: going too early and then abandoning the 2% inflation target by 2025, but going too late and slowing activity too much. », however, warns Francois Villeroy de Galhou without giving a date for this reduction in rates. Bank of France governor remained cautious on economic activity. ” Like Europe, activity is slowing in France. These managers estimate that their organization’s expected growth rate is around 0.2% per quarter, which will lead to “0.9% throughout 2024 “, he said.
However, François Villeroy de Galhau does not panic and predicts a “change in the economy” or a “recession”, whether in France or in Europe. ” The economic downturn hasn’t stopped companies from hiring », adds the governor of the Bank of France on employment, assuring that the unemployment rate that France is currently experiencing is “ Lowest in forty years “
Governor of Bank of France for increase in electricity prices
The governor of the Bank of France also expressed his position in favor of an increase in energy prices, supporting the government. for that, ” Exit the tariff shield » There is a way out of the debt spiral. Francois Villeroy de Galhau therefore welcomes the government’s decision to increase electricity prices on February 1.
” The decision was not easy, but it was necessary », in order to stabilize the debt, this supports the official who recommends keeping the budget deficit below 3% by 2027. ” They succeed by spending less. Let’s look at what works elsewhere to inspire us.” Comparing France and other European countries.
