Central Banks
ECB Should Keep Easing to Reach Neutral by Summer, Villeroy Says
- Estimates suggest neutral rate is on average close to 2%
- Inflation uptick won’t derail victory over inflation, he says
Francois Villeroy de Galhau
Photographer: Benjamin Girette/BloombergThis article is for subscribers only.
The European Central Bank should keep lowering borrowing costs at every meeting as long as the retreat in inflation matches its projections, according to Governing Council member Francois Villeroy de Galhau.
Cuts should continue until the deposit rate — currently 3% — reaches a level that neither restricts nor stimulates the region’s 20-nation economy, the Bank of France chief said.