Bank of France Governor Links Bond Yields to Economic Brake
Emmanuel Moulin states the Bank of France is making data-dependent policy decisions as rising government bond yields pressure the French economy.
Bank of France Governor Emmanuel Moulin announced that the central bank is making policy decisions on a meeting-by-meeting basis, remaining dependent on incoming data and market trends. Speaking at the annual meetings of the International Monetary Fund and World Bank Group, Moulin noted that a sharp rise in government bond yields is currently acting as a brake on the French economy.
Moulin expressed optimism that France can achieve significant fiscal consolidation and reduce its deficits, despite investor concerns that political paralysis may prevent the country from reining in public spending. He indicated that the bank is closely monitoring both the data and the market to inform its approach.
International Monetary Fund Managing Director Kristalina Georgieva also addressed the situation. She stated that while it will take time for France to lower its debt and deficit to confidence-building levels, she expects a budget that establishes a downward trend.
