ECB Shouldn’t Exclude Second Rate Cut in July, Villeroy Says
- Bank of France governor comments in Boersen-Zeitung interview
- Villeroy says market view on terminal rate ‘not unreasonable’
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The European Central Bank shouldn’t rule out lowering borrowing costs at both its June and July meetings, Governing Council member Francois Villeroy de Galhau said — pushing back against fellow monetary officials who are uncomfortable at the idea of consecutive cuts.
Villeroy told Germany’s Boersen-Zeitung newspaper that he favors “maximum optionality” after next month’s “done deal” reduction in the deposit rate, which he said can only be derailed by a shock.