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.
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