May 16, 2024
ECB’s Villeroy Says Probability of June Rate Cut ‘Significant’
Bloomberg News
,(Bloomberg) -- Bank of France Governor Francois Villeroy de Galhau said it’s very probable that the European Central Bank will start cutting interest rates at its June 6 meeting.
Speaking at a conference in Paris, the French policymaker said recent data on inflation are encouraging and confirm the ECB’s pledge to bring the pace of annual price increases back to 2% durably by next year.
“We have enough confidence to start to cut rates probably very soon,” Villeroy said at the Institute of International Finance summit. “The probability of a rate cut by our next meeting on June 6 is, how could I say, significant.”
His comments are in line with other rate-setters at the ECB who are aligned with starting to loosen policy at the next meeting.
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