HomeEconomyWhile prices are reduced, a drop in the ECB rate is "very...

While prices are reduced, a drop in the ECB rate is “very possible” according to the governor of the bank of France

François Villeroy de Galhau believes that the monetary policy of the European Central Bank could be informed during the next meetings, while inflation will be under the objective of 2%.

The European Central Bank (ECB) has decided to keep its guidance rates unchanged this Thursday, September 11, but could change its position during the next meetings.

The latter explains that he has particularly insisted on the downward trend in inflation at the last meeting. “We were several to point out the downward risks of inflation,” he explained, while the price index should be under the 2% target next year.

François Villeroy de Galhau cited as an explanation the tendency to evaluate the euro compared to the dollar and the increase in imports of China.

In addition, “American protectionism and the agreement concluded this summer will not cause additional inflation in Europe. The growing risks seem lower than the beginnings, for Europe anyway,” he continued, and added that the ECB should be ready “to move if necessary.”

Author: P.la.
Source: BFM TV

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