Central Banks
ECB’s Villeroy Seeks Flexibility on Speed, Size of Rate Cuts
- Muller, Vasle see progress on taming euro-area inflation
- Policymakers comment day after ECB accelerated pace of easing
The European Central Bank should remain flexible as it cuts interest rates in response to cooling inflation and a weakening economy, according to Governing Council member Francois Villeroy de Galhau.
Speaking less than a day after policymakers lowered borrowing costs for the third time this year, the Bank of France head cited the current unpredictable nature of geopolitics, as well as now equal risks of over- and under-shooting the 2% inflation goal.