(Bloomberg) -- The European Central Bank should continue to lower rates as inflation is set to return durably to 2% next year, Governing Council member Francois Villeroy de Galhau said.
While there’ll be some volatility in price data over the coming months, victory over inflation is “within sight,” the Bank of France chief said Wednesday.
“We have cut rates twice and we should continue to cut them,” he told BFM TV.
Villeroy, who’s urged officials to continue loosening monetary policy gradually, didn’t give any guidance on the timing of future moves.
He’s aligned with the central bank’s plan to keep a meeting-by-meeting approach to decisions, though he’s also warned of risks to both over- and undershooting the inflation goal as the euro area’s 20-nation economy loses momentum.
On Tuesday, the Bank of France cut its 2025 inflation forecast to 1.5% from 1.7% in June, mainly due to weaker electricity prices.
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