ECB’s Villeroy: Rate Cut in October ‘Very Likely’

9 October 2024

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Wednesday that a new interest rate cut was ‘very likely’ to emerge from next week's monetary policy meeting.

In an interview with French radio Franceinfo, Villeroy said that despite the potential ‘ups and downs’ of CPI in the coming months, ‘inflation will be at 2% in France at the beginning of next year and in Europe during the course of next year.’

October’s cut would not be the last one, but the precise path would hinge on the evolution of inflation, according to Villeroy.

‘[T]he victory against inflation is in sight. Inflation is down to 1.5% for the Eurozone, as it is for France in the European index’, he said.

This was good news firstly because of the restoration of purchasing power and secondly because the ECB would continue the easing of policy it began in June, according to Villeroy.