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ECB’s Villeroy: Balance of risks on growth and inflation is shifting to the downside

Speaking at a conference in Tokyo on Thursday, European Central Bank (ECB) policymaker Francois Villeroy de Galhau said that “the balance of risks on growth and inflation is shifting to the downside.”

Additional comments

Victory against inflation is in sight in Europe.

Inflation could be sustainably at 2% in early 2025.

Trump tariffs not expected to significantly alter inflation outlook in Europe.

Should continue to reduce degree of monetary policy restriction.

Pace of reduction must be determined by agile pragmatism.

We must maintain full optionality for upcoming meetings.

 

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