ECB’s Villeroy: Will Be at 2% ‘Probably’ in the Beginning of 2025

19 October 2024

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Saturday that inflation would reach the ECB's 2% target in the first part of 2025.

In an interview with French radio France Inter, Villeroy said, ‘There may be some temporary rises in coming months, but that’s a technical effect. Barring a major external shock, we’ll be at 2% of inflation next year, probably towards the beginning of next year’.

Inflation was almost defeated, he said.

Villeroy acknowledged that the ECB would cut rates further and reiterated that it would decide on the basis of available information.

‘But we will decide depending on data. I’m calling for agile pragmatism: Agile because we must move and cut rates when we can. Pragmatism, because we must look at the data and not lose sight of the forest for the trees’, he said.

Asked if this meant that December would feature a rate cut if data backed such outcome, Villeroy said, ‘It must be that... But I will not comment on the next meetings.’