ECB’s Villeroy Says Another Rate Cut Is Likely by Summer

The European Central Bank will probably lower borrowing costs again by the summer as trade tensions aren’t fueling inflation in the region, Governing Council member Francois Villeroy de Galhau said.

“The Trump administration’s protectionism will lead to a restarting of inflation in the US, but not in Europe, which will doubtless allow for another interest-rate cut between now and the summer,” Villeroy said in said in an interview with regional newspaper group EBRA published Tuesday.