ECB could still cut rates despite oil market volatility, policymaker Villeroy tells FT
The European Central Bank can further cut interest rates at a time of huge volatility in energy markets, policymaker Francois Villeroy de Galhau told the Financial Times in an interview published today.
“If we look at the present assessment of markets so far, inflation expectations remain moderate,” he said, adding that a confirmation of ceasefire between Israel and Iran could possibly lead to a further accomodation in ECB’s monetary policy in the next six months.
FT said that policymaker Villeroy, who is also head of the Bank of France, was speaking before US President Donald Trump said that Israel and Iran had agreed to a ceasefire.
If the European Central Bank decides to move on interest rates in the next six months, it would most likely be a cut, Villeroy said last week.
Article Source – ECB could still cut rates despite oil market volatility, policymaker Villeroy tells FT