PARIS: The European Central Bank should raise interest rates by 50 basis points (bsp) on Dec 15, French central bank chief Francois Villeroy de Galhau said on Sunday, reinforcing expectations for the ECB to slow the pace of monetary tightening.

ECB will probably keep raising rates beyond 2% level

The ECB has raised rates by a record 200 basis points since July, but a slowdown in euro zone inflation and more benign signals from the US Federal Reserve have solidified the case for a 50 bp move after back-to-back 75 bp hikes.