ECB to continue rising rates beyond 2%

The European Central Bank (ECB) is likely to continue raising interest rates beyond 2%. However, according to a statement made by France's central bank chief on Tuesday, giant rate hikes will not become a new habit for the ECB.

Governor of the Bank of France François Villeroy de Gallo said in a speech that France's central bank is already approaching a "normalization range". This level, according to Villeroy de Gallo, could be reached by December.

Beyond this level, the ECB is likely to continue raising rates, according to Villeroy de Gallo. However, rates might be raised in a less rapid manner.

Signs of a peak in headline and core inflation in the United States were "good news" given that the world's largest economy was at the forefront of the global inflation cycle, the French central bank governor said.