The European Central Bank will probably start cutting rates during the spring, between April and June 21, as the "victory" against inflation is in sight, French central bank head and ECB policymaker Francois Villeroy de Galhau has said. He also re-iterated that the inflation rate in France should fall to 2% next year. Meanwhile, ECB Governing Council member Pierre Wunsch said the ECB will have to gamble soon with an interest rate cut even though wage inflation and price rises for services are uncomfortably high. He said the ECB was getting to a point where it could react to inflation heading in the right direction. Eurozone inflation fell in February to 2.6%, but underlying price growth remained stubbornly high.

Source: Irish Examiner March 14, 2024 04:22 UTC