The interest rate on French government bonds with a 10-year maturity, which serves as a benchmark, surpassed the 1% mark on Thursday for the first time since February 2018. This occurred against a backdrop of monetary policy tightening by the U.S. Federal Reserve.
Since Monday, rates have resumed their climb, thanks to the firm commitment expressed by U.S. Federal Reserve Chairman Jerome Powell to raise key interest rates swiftly to counter inflation, which is at its highest level in 40 years in the United States.
In France, inflation could exceed 4% year-on-year in March, according to INSEE.
Raising key interest rates prompts commercial banks to offer higher interest rates for loans they grant to their clients, including both individuals and states.
