ECB’s Villeroy Sees Another Rate Cut ‘By the Summer’

13 May 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Tuesday that there was room for another rate cut by summer.

In an interview with French newspaper EBRA, Villeroy, who heads the Banque de France, said that the ECB did not ‘see inflation picking up.’

‘The Trump administration's protectionism will lead to a restart of inflation in the United States, but not in Europe, which will likely allow for another rate cut by the summer’, he said.

For France, international uncertainty was now greater than national uncertainty, according to Villeroy.

‘Proof of this is that uncertainty is greater in industry, which is more export-oriented, than in services’, he said. ‘At this stage, we see slower growth for 2025, but without a recession.’

Related articles:

• ECB’s Villeroy: ‘Still Have Room for Gradual Interest Rate Cuts’
• ECB’s Villeroy: US Policies A ‘Lose-Lose Game’, Negotiations and De-Escalation Best Outcome
• ECB’s Villeroy: ‘Quite Likely’ That Risks to Inflation Are to the Downside