European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Friday that “inflation should be back to around 2% by 2024.”

“Inflation will stay high next year,” Villeroy added.

Further comments

Half of the current inflation is not linked to energy or agricultural prices.

Important that French banks keep sufficient capital in reserve.

French mortgage rates remain very favorable.

French wear rate will be increased at the end of September.

Market reaction

The shared currency shrugs off the above comments, as EUR/USD is seen keeping its range around 1.0070, up 0.75% on the day.