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ECB is 'very likely' to reduce interest rates, Villeroy says

Published 10/09/2024, 01:52 AM
Updated 10/09/2024, 02:06 AM
© Reuters. FILE PHOTO: Bank of France Governor Francois Villeroy de Galhau looks on during the 54th annual meeting of the World Economic Forum in Davos, Switzerland, January 16, 2024. REUTERS/Denis Balibouse/File Photo
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PARIS (Reuters) -The European Central Bank (ECB) is "very likely" to reduce its interest rates next week, policymaker Francois Villeroy de Galhau said on Wednesday.

"A cut is very likely and it will not be the last one, the rhythm depending on how the fight against inflation evolves," Villeroy told franceinfo radio station.

© Reuters. FILE PHOTO: Bank of France Governor Francois Villeroy de Galhau looks on during the 54th annual meeting of the World Economic Forum in Davos, Switzerland, January 16, 2024. REUTERS/Denis Balibouse/File Photo

Villeroy, who is also the head of the French central bank, has said the ECB would likely cut interest rates later this month due to weak economic growth.

Twice already this year, the ECB has cut rates- initially at record highs - and markets expect more policy easing in October and December as inflation is easing faster than policymakers had predicted.

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