(Bloomberg) -- European Central Bank Governing Council member Francois Villeroy de Galhau said it’s too early to discuss where interest rates will peak, saying the monetary-tightening process should be carried out at the appropriate pace.

“Financial institutions want an orderly increase,” Villeroy told an event Monday in Paris. “It is, largely. But it doesn’t mean too slow, nor predetermined.” 

The ECB will decide next week on its final rate hike of 2022 after an unprecedented bout of inflation showed its first signs of abating. Villeroy said Sunday that he favors slowing the pace of increases to 50 basis points from 75, with markets also pricing in a move of that size.

Villeroy also said:

  • A hard landing for the French economy is unlikely. French mortgages remain the cheapest, most abundant and safest among large European countries
  • Even so, increased energy costs for individuals and companies represent roughly 2% of GDP

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