Villeroy, ECB likely to cut interest rates in April or June – breaking news

“It is very likely that there will be a first rate cut in the spring, and the spring is from April to June.”


This was stated by the Governor of the Bank of France and Advisor to the European Central Bank, François Villeroy de Galhau, to Bfm Business. “We now have more confidence in the ability to return inflation to 2% between now and next year.” Villeroy said.


The French governor's words add to those of several other ECB officials following the Governing Council meeting. “We will return to the topic at the next meetings in April and June based on updated information,” said Finnish Olli Rehn, although he warned that “the rapid rise in wages keeps inflation high in the service sector, which is currently the main cause.” The most important factor. “June is the likely month to cut interest rates,” said Lithuanian Governor Gediminas Simkus.


Martins Kazaks, of the Central Bank of Latvia, is more cautious: “The first cut will be important because it will show that we have changed direction.” But “this does not mean that we will have to reduce at every meeting.”

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