MNI BRIEF: ECB Rate Cuts Must Continue Into '25-ECB's Villeroy
Bank of France Governor sees ECB easing into 2025, but can react to events in mid-east if material impact on economy, price outlook.
The ECB will follow its expected rate cut in June with further cuts through 2024 and more into 2025, Bank of France Governor Francois Villeroy said Tuesday. (see MNI SOURCES: ECB Still Divided Over Guidance As It Nears Cuts)
In a speech to the Economic Club of New York, Villeroy reiterated that the ECB would cut rates for the first time on June 6, barring any surprises, adding that policymakers had enough room to adjust the pace and destination of its cuts to address any lasting and propagating effects from developments in the Middle East for energy prices. (MNI ECB WATCH: On Course For June Cut, Still Data-Dependent)
"We would have ample room after the first rate cut to adjust the pace and destination -- if needed -- in the incoming monetary path," he said, adding that the ECB will "still be in restrictive territory for a while".