The ECB could probably cut interest rates in the Eurozone more quickly than expected because the inflation rate is falling significantly. The market’s current expectations could still be too optimistic.
Francois Villeroy de Galhau’s voice has weight in the Council of the European Central Bank (ECB). After all, he is head of the French central bank Banque de France and therefore represents the second largest economy in the Eurozone in monetary policy decisions. In this respect, it is a clear sign when he describes a further interest rate cut as “very likely” at the ECB Council meeting next week (October 17th). This was expressed in an interview with the Italian daily newspaper “La Repubblica”.
Source: Stern
