Central Banks

ECB Deposit Rate Could Be 2% in the Summer, Villeroy Says

  • Bank of France chief comments in Alternatives Economiques
  • ECB not yet debating direction after the summer, Villeroy says
Francois Villeroy de Galhau Photographer: Alex Kraus/Bloomberg
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Cuts could bring European Central Bank interest rates to 2% this summer but beyond that there’s no clarity on direction, according to Governing Council member Francois Villeroy de Galhau.

“We are the first big, Western central bank to have begun a rate-cutting cycle last year,” the Bank of France chief said in an interview with French magazine Alternatives Economiques. “Seen today, we could be at 2% this coming summer.”