Market: Barring any surprises, the ECB foresees a rate cut in June, Villeroy said

PARIS (Reuters) – The European Central Bank (ECB) has growing confidence in the disinflation trajectory, which should allow a first rate cut in June, said François Villeroy de Galhau, member of the Bank’s Governing Council. central bank, in an interview with JDD published on Saturday.

“(…) barring any surprises, we should decide on a first reduction at our next meeting on June 6. We indeed have greater and greater confidence in the disinflation trajectory,” the governor told the weekly. of the Bank of France.

François Villeroy de Galhau then advocates further cuts between now and the end of the year with “a pragmatic gradualism – according to economic data – and sufficiently agile”, he explains, specifying that “we will not return to rates ultra-low, even negative”.

The ECB maintained its key rates at their current levels on Thursday while paving the way for a relaxation of its monetary policy. This was its first reference to rate cuts since the start of its monetary tightening cycle.

Three sources told Reuters on Thursday that members of the ECB Governing Council planned to cut interest rates in June but that some of them believed that a pause would then be possible in July, given the rebound in inflation in the United States.

(Reporting by Leigh Thomas, writing by Kate Entringer)

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