there will be more interest rate cuts in 2025 (#1686222)

The European Central Bank is likely to cut interest rates further next year and is comfortable with market projections for future rates, ECB policymaker and Bank of France President Francois Villeroy de said on Friday. Galhau.

“Next year there will be more rate cuts,” Villeroy told business radio BFM.
“There is no upfront commitment on a path for rates… I note that collectively we are quite comfortable with the financial markets' interest rate forecasts for next year,” he added.

The European Central Bank cut interest rates for the fourth time this year on Thursday, keeping the door open to further easing as the euro zone economy is dragged down by domestic political instability and the threat of a new trade war with the United States. Joined.

The ECB reached a deal on Thursday with a 25 basis point rate cut, bringing the ECB deposit rate, the benchmark for borrowing costs across the 20-nation currency bloc, to 3%.

The central bank also removed an earlier reference in its guidance to keeping interest rates sufficiently restrictive, which economists interpreted as a sign that further policy easing is on the way, perhaps as early as January, as it is expected to inflation to stabilize at the ECB's 2% target in early January. 2025.