PARIS (Reuters) -There is room for another rate cut by the European Central Bank by the summer, ECB policymaker Francois Villeroy de Galhau said in a French newspaper group interview on Tuesday.
Villeroy – who is also head of the Bank of France – said the United States would likely see an uptick in inflation from President Donald Trump’s tariffs, but Europe should be spared.
“We also don’t see inflation picking up. The Trump administration’s protectionism will lead to a restart of inflation in the United States, but not in Europe, which will likely allow for another rate cut by the summer,” he told the EBRA newspaper group.
The next ECB monetary policy meeting is due to conclude on June 5.
(Reporting by Gabriel Stargardter; Editing by Lisa Shumaker)
Comments