ECB to Watch Geopolitical Risk When Cutting Rates, Villeroy Says
(Bloomberg) -- The European Central Bank will monitor geopolitical risks as it embarks on interest-rate cuts in June, Governing Council member Francois Villeroy de Galhau said.
Most Read from Bloomberg
Dubai Grinds to Standstill as Cloud Seeding Worsens Flooding
China Tells Iran Cooperation Will Last After Attack on Israel
What If Fed Rate Hikes Are Actually Sparking US Economic Boom?
Powell Signals Rate-Cut Delay After Run of Inflation Surprises
Red Lobster Considers Bankruptcy to Deal With Leases and Labor Costs
The French central banker repeated his view that the ECB is on track to begin loosening policy at its next meeting as the wave of inflation that washed over the euro area subsides.
Echoing recent comments fellow policymakers, however, he also flagged that the ECB will examine the potential impact on energy prices of an escalation in tensions in the Middle East after Iran’s strike on Israel.
“Barring major shocks and surprises, we should decide a first rate cut early June, followed by others in a pragmatic and agile gradualism,” Villeroy said in a speech in New York. “And we’ll obviously monitor the possible consequences of the developments in the Middle East.”
Most Read from Bloomberg Businessweek
A Resilient Global Economy Masks Growing Debt and Inequality
Cities Use AI to Help Ambulances and Firetrucks Arrive Faster
The Shadow Swiftie Economy Booms With Bootleg Bracelets and $1,150 Bodysuits
©2024 Bloomberg L.P.