ECB ‘very likely’ to cut interest rates, says Villeroy By Reuters

PARIS (Reuters) – The European Central Bank (ECB) is “very likely” to cut interest rates next week, policymaker Francois Villeroy de Galhau said on Wednesday.

“A reduction is very likely and will not be the last, the pace depending on how the fight against inflation evolves,” Villeroy told franceinfo radio.

Villeroy, who is also head of the French central bank, said the ECB would likely cut interest rates later this month due to weak economic growth.

Twice this year, the ECB has cut interest rates – initially to record levels – and markets expect more policy easing in October and December as inflation eases faster than policymakers predicted.