Central Banks

ECB’s Villeroy Says Tariffs Favor Cutting Rates Again ‘Soon’

Francois Villeroy de GalhauPhotographer: Alex Kraus/Bloomberg
Lock
This article is for subscribers only.

The European Central Bank should lower interest rates “soon” as US President Donald Trump’s tariffs and the fallout on global markets favor such a move, according to Governing Council member Francois Villeroy de Galhau.

The trade war will have a “non-negligible” direct impact on the economy that will take about 0.25 percentage point off growth this year, the Bank of France chief warned.