Economy

ECB's Villeroy Predicts Eurozone Neutral Rate Achievement by Summer

ECB's Villeroy Predicts Eurozone Neutral Rate Achievement by Summer

In a recent statement, Francois Villeroy de Galhau, a member of the European Central Bank (ECB) Governing Council and Governor of the Bank of France, shared optimistic projections regarding the Eurozone's economic trajectory. He suggested that the neutral interest rate could be achieved by summer, provided the current trend of decreasing inflation continues.

"Should the anticipated decline in inflation be confirmed in the upcoming quarters, it would be logical to aim for the neutral rate without decelerating the pace of rate cuts by summer," Villeroy explained during an event at the French central bank.

He also addressed the latest inflation figures, stating that the increase was expected and does not undermine the progress made in controlling inflation. "The recent rise in Eurozone's inflation was anticipated and does not question our success in overcoming inflation," Villeroy added.