ECB's Villeroy: euro area growth is resilient. The main problem is inflation

ECB's Villeroy is speaking and says:

• Euro area growth is resilient
• Main problem is inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term in the short-term
• ECB must normalize monetary policy because of broadening inflation
• ECB will bring inflation back to 2%
• Policy will week normalize, not tightened
• In the short-term, deal on rate hike is probably done
• We have no FX target but FX rate do matter
• FX rates matter as they influence imported inflation

ECB's Lagarde indicated the expectations that the ECB rate would move toward positive territory by the end of the 3rd quarter. That applies to 25 basis point hikes at the July and September meetings.

There are others on the board who would like a faster pace including a 50 basis point hike to launch the upside normalization.