Moderate Inflation and Economic Outlook in France

Francois Villeroy de Galhau, head of the Bank of France, anticipates moderate inflation and further ECB rate cuts. Additionally, he expects French unemployment to rise to 8% before decreasing. The Bank of France's latest outlook predicts stagnant economic growth for the year's final quarter.

The head of the Bank of France and ECB member, Francois Villeroy de Galhau, signaled a cautiously optimistic stance on Wednesday, forecasting moderate inflation levels in France. He further hinted at additional rate cuts by the European Central Bank as part of ongoing monetary policy measures.

In a conversation with France Inter radio, Villeroy projected a temporary uptick in the nation's unemployment rate, suggesting it could climb to 8% before stabilizing back to 7%. This forecast reflects the complex dynamics in the current economic environment.

On the economic growth front, the Bank of France released its latest monthly report, indicating no significant growth in the final three months of 2023. The outlook underscores challenges facing the French economy amidst broader European economic conditions.

(With inputs from agencies.)