ECB’s Villeroy sees rate hike ‘quarters’ not years after QE end
“European Central Bank policy maker Francois Villeroy de Galhau signaled that he expects bond purchases to end this year and an interest-rate hike could follow in 2019, putting him in the camp of officials who see the current euro-area slowdown as temporary. . . .The ECB could say a rate increase will follow the halting of net asset purchases by ‘at least some quarters, but not years’ he said on Monday in a Bloomberg TV interview…”
MK note: Most of the dollar’s strength of late has come the result of easy monetary policies in Europe and Japan – policies that weaken their respective currencies against the dollar. If Europe is about to step on the breaks it will undermine that narrative, which might in a ciruitous way make it way to the gold market as a positive development.