French central bank chief says geopolitical shocks are spilling over into finance
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François Villeroy de Galhau, the governor of the Bank of France and a member of the European Central Bank's Governing Council, said on the 8th that geopolitical shocks are increasingly turning into financial shocks. Speaking at a conference in Istanbul, the governor said that this year's inflation shock in Europe is almost entirely energy-related, while noting that the geopolitical shocks that drove prices sharply higher are now spilling over into finance as well. He said there is a strong correlation between crude oil, long-term U.S. interest rates and European interest rates, and that rising rates are affecting financial conditions.