“We are going to measure inflation expectations”, announces the Governor of the Banque de France

INTERVIEW

Inflation, monetary policy, savings … In a large study, the Banque de France asked the French about their expectations in terms of the economy. Its governor since 2015, François Villeroy de Galhau, came to present his report exclusively on Wednesday morning on Europe 1. According to him, the French population is attached to its currency, but does not know enough about monetary policy. This is why changes will be made for the sake of transparency.

“We are going to measure inflation expectations, that is to say the way in which SMEs and households see the development of inflation in the coming months,” he announced. very important because it will guide their behavior on prices and wages “.

“We owe clarity to the French”

It has indeed emerged that the French overestimate inflation. “43% of them estimated that it had been greater than 2% last year, while the reality of the figures was 0.5%”, detailed François Villeroy de Galhau. According to him, this phenomenon is quite natural. “In our daily lives, we are necessarily more sensitive to rising prices than to falling prices,” he continued.

He also explained that the French had alerted them to the cost of housing, which they did not find sufficiently taken into account. “We are therefore going to see how we can rectify this”, announced the governor of the Banque de France.

For the senior official, this study is an unprecedented operation. “The Banque de France is at the service of all French people, and we owe them clarity,” he said. “And if our monetary policy is better understood, it will be more effective. So it is in everyone’s interest,” continued François Villeroy de Galhau, who said he was pleasantly surprised by the large participation of the population in this survey. .

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