Bank of France head: ECB has ample capacity for further rate cuts

ECB Governing Council member Francois Villeroy de Galhau confirmed the central bank maintains policy space for additional interest rate reductions, though the pace and extent of future cuts remain undetermined.

The Eurozone's persistent disinflation enables potential monetary easing, though policymakers must weigh external risks including US trade actions and financial market conditions, the French central bank chief emphasized.

However, the Bank of France governor emphasized that tariffs are unlikely to substantially impact the eurozone economy, noting the more pronounced effects will likely be felt within the United States itself.

Bloomberg-surveyed economists assign over a 50% probability to a 25 basis-point ECB rate cut at the April 17 meeting. Villeroy de Galhau emphasized that the ECB must remain data-dependent in its policy decisions.