betting on a rate cut now is premature

It is “premature” to bet on a cut to interest rates, Francois Villeroy de Galhau, France’s central bank governor, told CNBC, as market players consider whether the European Central Bank has reached peak rates.

“We should remain at this level for a sufficiently long period of time,” he told CNBC’s Annette Weisbach exclusively on Monday. “Betting now on the next cut is probably premature.”

The ECB hiked rates once again earlier this month, bringing its main deposit rate to 4%. The benchmark rate stood at -0.5% in July 2022 before the central bank embarked on an intense rate hiking cycle in an effort to tackle high inflation.

Data for August showed that headline inflation in the euro zone came in higher than analysts had expected at 5.2%, down from 5.3% the previous month.

This is a breaking news story and it is being updated.