# Bank of France Expects Inflation to Hit 2% Target by 2027-2028
Bank of France Governor François Villeroy projects that eurozone inflation will return to the European Central Bank's 2% target between 2027 and 2028. This timeline extends beyond the ECB's previous expectations and reflects persistent price pressures across the region.
Villeroy's forecast comes as the ECB navigates competing pressures. Inflation has proved stickier than initially predicted, driven by wage growth and energy costs. Meanwhile, economic growth remains sluggish, creating tension between the need to control prices and the desire to support employment.
The governor's comments suggest the central bank will maintain elevated interest rates longer than some market participants hoped. Rate cuts may come slowly as policymakers wait for clearer evidence that inflation is falling sustainably toward target.
This projection matters for savers, borrowers, and investors across Europe. Higher rates for longer support savings returns but increase mortgage and loan costs. Stock markets have priced in earlier rate cuts, so Villeroy's hawkish stance could weigh on equities.
The ECB will reassess inflation data quarterly. Economic shocks, wage negotiations, or supply chain disruptions could accelerate or delay the path to 2%. Markets will watch incoming inflation prints closely for signals about when rate cuts might begin.