21 March | Euro

Villeroy de Galhau: ECB has room for further rate cuts

Villeroy de Galhau: ECB has room for further rate cuts

According to Francois Villeroy de Galhau, a member of the Governing Council of the European Central Bank (ECB), the regulator has room for further cuts in borrowing costs. According to the official, price growth in the region is now less of a concern than a similar situation in the US.

Villeroy downplayed the inflationary risks to the EU from US trade restrictions. According to his statement, the tariffs from the United States will restrain the bloc's economic growth, but consumer prices will be much less affected.

As the official emphasized, the ECB still has room to ease monetary policy. The only thing that remains uncertain is the pace of the measures taken in the context of instability.

According to Bloomberg, the regulator is considering the need to cut the deposit rate for the seventh time in this cycle to 2.25% in April. Proponents of such a move believe that inflation is on track to return to the 2% target. Other officials are concerned not only about US trade policy, but also about the impact of significantly increased defense and infrastructure spending in Europe.

Elena Dorohina MarketCheese
Period: 01.05.2025 Expectation: 1000 pips
GBPUSD to test level of 1.34 again
25 April 2025 58
Brent sell
Period: 01.05.2025 Expectation: 660 pips
Trade uncertainty and excess OPEC+ supply are dragging down Brent
25 April 2025 47
Period: 29.04.2025 Expectation: 600 pips
USDCAD to head towards 1.39400 after rebounding from 1.38200
25 April 2025 38
Period: 02.05.2025 Expectation: 1669 pips
AUDCAD gains on potential easing of trade tensions between US and China
25 April 2025 37
Period: 30.04.2025 Expectation: 12000 pips
ETHUSD set to test upper boundary of downtrend channel
24 April 2025 94
Period: 25.04.2025 Expectation: 500 pips
AUDUSD to fall to 0.63000
24 April 2025 46
Go to forecasts