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.

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