Central Banks
Villeroy Says ECB Should Cut Rates in 2024 After Plateau
- He warns that cutting too soon would risk reigniting prices
- French official says beating inflation best way to buoy growth
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The European Central Bank should lower borrowing costs next year after keeping them at their peak long enough to ensure it has beaten down inflation, according to Governing Council member Francois Villeroy de Galhau.
As officials increasingly discuss interest-rate cuts — despite President Christine Lagarde steering clear of the topic — the Bank of France chief called for the deposit rate to stay at 4% as long as necessary, but said the next move will almost certainly be a reduction.