PARIS (Reuters) – If the European Central Bank (ECB) decides to modify its guiding rates over the next six months, it will most likely be a drop, François Villeroy de Galhau, a member of the Frankfurt institution and governor of the Banque de France (BDF) on Thursday.
The ECB lowered its loan costs at the beginning of the month, bringing the deposit rate from 2.25% to 2.0%, but it suggested that it could now opt for a summer break in its monetary easing.
This despite projections showing that prices growth will temporarily fall under the medium -term target of 2% of the bank due to the vigor of the euro and the weakness of oil prices.
“Unless a major exogenous shock, including possible new military developments in the Middle East, if monetary policy should evolve over the next six months, it would rather be in the direction of a relaxation,” said François Villeroy de Galhau, during a speech at the European University Institute in Italy.
(Report Leigh Thomas; Claude Chendjou, edited by Sophie Louet)
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