Central banks of Germany and France promised to reduce inflation fivefold

Central banks of Germany and France promised to reduce inflation to 2% till the end of 2025
German and French regulators pledged to bring inflation down to 2% in two to three years. Annual inflation in the Eurozone rose to 10.6% in October and fell to 10% in November. The ECB is thinking of raising its key rate

Inflation in Germany and France will return to the 2% target by the end of 2024 or 2025, said Bundesbank President Joachim Nagel and Banque de France Governor François Villrois de Galo. They promised this in a joint statement on Germany's Phoenix channel, Bloomberg writes.

"We will return inflation to 2 percent by the end of 2024 or 2025. This is not just a forecast, a projection. It's a commitment," stressed Villeroy.

He noted that the European Central Bank's (ECB's) policy tightening will help curb price growth, which is now five times the target (about 10%). When asked how long interest rates will rise, he replied: "As long as necessary.