ECB’s Villeroy: Interest Rate Normalisation ‘May Not Yet Be Over’

27 May 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Tuesday that ECB interest rate cuts might not be over yet.

In a speech at the presentation of the 2024 ACPR annual report, Villeroy, who heads the Banque de France, said that the Eurozone had ‘returned to what could be termed the “2-2” zone: inflation close to our 2% target and a policy rate now at 2.25%, well below the US and UK rates of 4.25%.’

French preliminary CPI data for May, released today at 0.6%, was a ‘very encouraging indication’ that the disinflation process was on track, according to Villeroy.

‘And this normalisation process may not yet be over: we will see during next week’s Governing Council meeting’, he said.

Related articles:

• ECB’s Villeroy: ‘Not Yet’ in Currency War, But There is a Threat of a Trade War
• ECB’s Villeroy Sees Another Rate Cut ‘By the Summer’
• ECB’s Villeroy: ‘Still Have Room for Gradual Interest Rate Cuts’