ECB VILLEROY: BANK WILL QUITE PROBABLY CUT RATES IN OCTOBER
European Central Bank (ECB) Governing Council policymaker and French central bank governor François Villeroy de Galhau said on Sunday that the central bank might cut the interest rate in the October meeting as economic growth is weak.
Key quotes
ECB will probably cut interest rates on October 17.
Economic growth is weak, bringing the risk that inflation will undershoot its 2% target.
In the last two years, our main risk was to overshoot our 2% target, now we must also pay attention to the opposite risk, of undershooting our objective due to weak growth and a restrictive monetary policy for too long.
ECB should be back at the "neutral" rate sometime in 2025.
If we are next year sustainably at 2% inflation, and with still a sluggish growth outlook in Europe, there won’t be any reason for our monetary policy to remain restrictive, and our rates to be above the neutral rate of interest.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.