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MNI BRIEF: October ECB Rate Cut “Very Likely” – Villeroy

ECB will likely cut rates in October, Bank of France governer tells Italian media.

MNI (LONDON) - The European Central Bank will “very likely” cut interest rates again at its October meeting, as the balance of risks are "shifting” and dangers of undershooting the current inflation target are growing, Bank of France Governor Francois Villeroy de Galhu said in an interview with Repubblica published on Monday. (see MNI SOURCES: Chances Of October ECB Cut At Least 50-50 )

Weak growth and a restrictive monetary policy for too long risks inflation going below 2%, with financial markets now seeing prices at 1.8% next year, he said, adding that core inflation will gradually come close to 2% too in 2025.

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MNI (LONDON) - The European Central Bank will “very likely” cut interest rates again at its October meeting, as the balance of risks are "shifting” and dangers of undershooting the current inflation target are growing, Bank of France Governor Francois Villeroy de Galhu said in an interview with Repubblica published on Monday. (see MNI SOURCES: Chances Of October ECB Cut At Least 50-50 )

Weak growth and a restrictive monetary policy for too long risks inflation going below 2%, with financial markets now seeing prices at 1.8% next year, he said, adding that core inflation will gradually come close to 2% too in 2025.

Keep reading...Show less