There should be an interest rate cut this year, but the timing is uncertain, says Villeroy de Galhau, from the ECB

Member of the board of the European Central Bank (ECB), François Villeroy de Galhau said this Tuesday (16) that although it is too early to declare victory in the battle against inflation, the ECB will probably cut interest rates this year. He, however, declined to comment on which “station” the first interest rate cut might come in, during a panel at the World Economic Forum in Davos, Switzerland.

According to Villeroy de Galhau, who is also president of the Central Bank of France, the expectation in both the euro zone and the US is for a “soft landing” – avoiding a significant recession –, which raises the question of the role of monetary policy in disinflation. .

Given the steady decline in core inflation and the successful anchoring of inflation expectations, there are clear differences from the inflationary crises of the 1970s, he added. Source: Dow Jones Newswires.