Central Banks
ECB’s Villeroy Urges Agility on Rates to Not Fall Behind Curve
- Loosening too late may be more risky than too early, he says
- Policy mustn’t needlessly restrain economy, Villeroy says
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The European Central Bank must be agile with further interest-rate cuts to avoid the risk of acting too slowly, according to Governing Council member Francois Villeroy de Galhau.
The Bank of France chief said persistently too-strong inflation is no longer the “sole and dominant risk” for the euro area as there’s equally the opposite risk of undershooting the 2% target — especially if growth remains sub par. The latest figures show inflation could be at that level in early 2025, he said.