The European Central Bank is likely to cut interest rates, following signals from Villeroy, a senior ECB official, that this is due to the faltering economy in the eurozone.
ECB policymaker Francois Villeroy de Galhau noted that the ECB is very likely to cut interest rates next week depending on the progress made in the fight against rising prices and weak economic growth, and this reduction will not be the last, but the next Pace will depend on the development of the fight against inflation.
He also said We are used to acting gradually, that is to say decisively but without taking too big steps.
As head of the French central bank, Villeroy's comments add weight to the growing expectations of policy easing, aimed at supporting the struggling eurozone economy.
