François Villeroy de Galhau: "It would be fair and wise to decide on a new rate cut"
The Governor of the Bank of France pleads for a new cut in interest rates by the European Central Bank (ECB) to boost economic growth and inflation in the eurozone.
François Villeroy de Galhau, Governor of the Bank of France, gave an interview to the German newspaper Handelsblatt, published on April 24, 2023, in which he pleaded for a new interest rate cut by the European Central Bank (ECB).
The Governor of the Bank of France, François Villeroy de Galhau, pleaded for a new interest rate cut by the European Central Bank (ECB) to boost economic growth and inflation in the eurozone.
He believes that a rate cut would be "fair and wise" and would make it possible to "support growth and inflation" in the eurozone.
Villeroy de Galhau also stressed that he was not speaking on behalf of the ECB's Governing Council and that any decision on interest rates would be made collectively.
The ECB has kept its key interest rates unchanged since 2016 and has also launched a large-scale asset purchase program to support the economy.
However, inflation in the eurozone remains below the ECB's target of 2% and economic growth has slowed in recent months.
Some economists believe that the ECB should cut interest rates to boost growth and inflation.
The ECB is expected to make a decision on interest rates at its next meeting on May 9, 2023.
The main points of François Villeroy de Galhau's interview:
- He believes a rate cut would be "fair and wise" to support growth and inflation.
- He stressed that he was not speaking on behalf of the ECB's Governing Council.
- The ECB has kept interest rates unchanged since 2016 and launched an asset purchase program.
- Inflation remains below the ECB's target of 2% and economic growth has slowed.
- The ECB is expected to make a decision on interest rates at its next meeting on May 9, 2023.
Sources:
- https://www.handelsblatt.com/finanzen/banken-versicherungen/ezb-chef-villeroy-de-galhau-wir-brauchen-eine-neue-zinssenkung/28909152.html
- https://www.ecb.europa.eu/press/key-interest-rates.en.html
- https://www.ecb.europa.eu/stats/monetary_and_financial_statistics/html/index.en.html
Comments