ECB’s Villeroy: “Cannot Completely Rule Out” Possibility of a Rate Cut, though “Clearly Far Less Probable”

ECB’s Villeroy: Rate Cut Unlikely but Not Impossible

François Villeroy de Galhau, a member of the European Central Bank’s Governing Council and Governor of the Banque de France, stated on Friday that while a reduction in interest rates cannot be completely dismissed, it remains highly improbable given the current circumstances.

Speaking with the French financial publication Boursorama, Villeroy emphasized that the ongoing conflict in the Middle East is expected to drive inflation higher and hinder economic growth. However, he noted that the overall impact will largely depend on how long and severe the conflict becomes.

He pointed to recent events, including attacks earlier in the week, as signs that the situation may become more prolonged and intense.