ECB’s Villeroy: Should ‘Quite Probably’ Expect an October Rate Cut

7 October 2024

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Monday confirmed that the Governing Council was likely to cut interest rates at its next monetary policy meeting

In an interview with Italian daily la Repubblica, Villeroy, who heads the Banque de France, was asked whether, in the context of anemic growth, the ECB could be expected to ease monetary policy in October.

‘Yes, quite probably, as President Lagarde hinted in the European Parliament last Monday’, he replied. ‘But not exactly for the reason you mention: our compass for monetary policy and rate cuts is first and foremost inflation, which again surprised on the downside and fell below 2% in September, at 1.8%.’