ECB Can Still Move Quickly to Adjust Rates, Villeroy Says

The European Central Bank could still move quickly to adjust interest rates even after an eighth successive cut “normalized” monetary policy, according to Governing Council member Francois Villeroy de Galhau.

“Since last Thursday, we have been in the favorable ‘2 and 2’ zone, with inflation forecast at 2% this year – which is our target – and our key rate at 2%,” the French official told a Europlace conference in Paris on Tuesday. “But in such an uncertain environment, this favorable zone does not mean a comfortable zone or a static zone: We will remain pragmatic and data-driven, and as agile as necessary.”