FRANKFURT (Reuters) – The European Central Bank (ECB) will likely cut rates in June, but several statements from Governing Council members on Thursday showed officials are divided over next steps.
“Barring any major surprises, we will have to lower rates (in June). We are more and more confident in the process of disinflation in the euro zone,” declared the governor of the Bank of France, François Villeroy, to the American channel CNBC. Galhau, stressing that it was “time to take out insurance against the risk of finding ourselves behind the curve”.
It is possible that the three rate cuts expected by the markets this year will materialize, Dutch central bank governor Klaas Knot told Bloomberg TV.
“These market expectations do not bother me. However, we do not commit in advance (on rate cuts). We are dependent on the data,” recalled the governor.
The President of the Bundesbank, Joachim Nagel, was more mixed.
“What will happen after (June)? I would liken it to a careful gliding,” the monetary policy official said during a conference organized during the spring meetings of the International Monetary Fund and the World Bank.
(Reporting Balazs Koranyi, Francesco Canepa, Inti Landauro, Corentin Chappron, edited by Jean-Stéphane Brosse)
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