ECB Governing Council member Francois Villeroy de Galhau said that in the face of cooling inflation and economic weakening, the ECB should maintain flexibility in cutting interest rates. The Bank of France governor mentioned the unpredictability of current geopolitics and the same risk that inflation is currently above or below the 2% target. “In my opinion, the direction is clear; we should continue to make monetary policy less restrictive in an appropriate way,” he told reporters in Paris. “But the pace should be flexible and pragmatic. In a very uncertain international environment, we reserve all options for future meetings.”

ECB Governing Council member Francois Villeroy de Galhau said that in the face of cooling inflation and economic weakening, the ECB should maintain flexibility in cutting interest rates. The Bank of France governor mentioned the unpredictability of current geopolitics and the same risk that inflation is currently above or below the 2% target. “In my opinion, the direction is clear; we should continue to make monetary policy less restrictive in an appropriate way,” he told reporters in Paris. “But the pace should be flexible and pragmatic. In a very uncertain international environment, we reserve all options for future meetings.”