According to Reuters, French central bank chief and European Central Bank (ECB) policymaker Villeroy de Galhau indicated on Thursday that rate cuts are a possibility at the upcoming meeting, unless there is a major unexpected development.
Key takeaways
“The danger lies in falling behind the curve and facing excessive costs in terms of economic activity.”
“It’s prudent to hedge against the risk of lagging behind the curve.”
“Following the initial rate cut, we’ll closely monitor inflation figures.”
“Inflation is gradually returning to our target.”
“Our primary focus is on maintaining domestic price stability.”
“Fortunately, we’ve managed to steer clear of a recession, yet growth in Europe remains inadequate.”
“When inflation begins to recede, it’s time to refocus on structural reforms.”
Market reaction
Following these remarks, the EUR/USD pair edged downwards slightly and was last observed declining by 0.1% on the day, reaching 1.0660.
