ECB’s Villeroy: No Need to Increase Cut Size if Current Pace Remains Decisive
21 January 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Tuesday that the ECB did not have to deliver larger interest rate cuts as long as the pace remained steady.
In an interview with Bloomberg TV, Villeroy, who heads the Banque de France, said that ‘[i]f we are decisive enough about this pace of the cuts, we don’t need now to increase the magnitude of the cuts, which could be another debate.’
Villeroy said he did not want to rule out turning to bigger steps in the future but warned that the ECB ‘should be ready to act.’
The convergence of inflation to the 2% target was on track in spite of US President Donald Trump’s potential tariff increases, he said.
‘There’s a plausible consensus that we will go on acting at each meeting, which we have successfully practiced since September’, he indicated.
The ECB could lower rates to 2% by the summer from the current 3%, according to Villeroy.
Related articles:
- ECB’s Villeroy: Would Make Sense to Get to 2% by Summer ‘Without Slowing the Pace’
- ECB’s Villeroy: If Inflation Falls as Expected, Should Be at Neutral By Summer
- ECB’s Villeroy: ‘We Are in a Really Difficult Budget Situation’