ECB's Villeroy Advocates for Continued Easing to Achieve Neutral Rates by Summer

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Francois Villeroy de Galhau, a member of the European Central Bank's Governing Council, suggests that the ECB should consistently lower borrowing costs at each meeting until inflation aligns with forecasts. He believes that achieving a neutral deposit rate, which is suggested to be around 2%, is crucial for the eurozone's economic balance. Despite a recent uptick in inflation to 2.4%, Villeroy asserts that this does not jeopardize the ECB's ability to maintain its 2% inflation target, predicting further cuts in upcoming meetings.

Source: YAHOO

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