PARIS (Reuters) – The European Central Bank (ECB) will cut interest rates this year when it sees that the inflation outlook has stabilized in line with its 2% target, François Villeroy de Galhau said on Tuesday. member of the board of governors of the Frankfurt institute.
Investors are pricing in several rate cuts this year, with the first coming in March or April, although some central bankers say more time may be needed to ensure inflation is brought under control.
François Villeroy de Galhau, governor of the Banque de France, gave the date as he expressed his wishes to the French financial sector on Tuesday, saying that the ECB’s decisions would not be guided by a calendar but by data.
“We will cut rates this year when the inflation outlook is firmly anchored at 2% – this is the actual data – and sustainably (…),” he declared.
Eurozone inflation is slowing, except in December when it accelerated to 2.9% from 2.4% in November, mainly due to technical factors such as the end of government subsidies and falling food prices. energy, which are not included in the calculation of underlying inflation.
(Reporting Leigh Thomas, Kate Entringer)
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