Bank of France Official: Inflation Expectations of Households and Firms Remain Anchored

Bank of France Official: Inflation Expectations of Households and Firms Remain Anchored. Mullen, a European Central Bank member, said rising bond yields could weigh on demand and lead to a more moderate response to inflationary shocks. He also stressed that inflation expectations among firms and households remain well anchored over the medium term, and that inflation is mainly affected by the Middle East conflict and energy-related factors.

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Mullen, a member of the European Central Bank, said the increase in bond yields may affect demand and lead to a more moderate response to an inflationary shock. He added that the inflation expectations of companies and households in the medium term are still well contained and inflation is mainly affected by the Middle East conflict and energy-related factors.

He also said France must immediately show its commitment to fiscal consolidation, approve the 2027 budget and reduce the budget deficit.