Thursday, 3 April 2025
Home Topics Business European Central Bank can adjust pace of cuts if Mideast tensions flare: Villeroy
BusinessEconomyFinanceNewsOilPolitics

European Central Bank can adjust pace of cuts if Mideast tensions flare: Villeroy

82
Francois Villeroy de Galhau, Governor of Banque de France, attends the Paris Europlace International Financial Forum in Paris, France, July 12, 2022. REUTERS/Benoit Tessier/File Photo

NEW YORK (Reuters) – The European Central Bank will be in a position to adapt the pace of rate cuts if the fallout from Middle East tensions has a lasting impact on energy prices and inflation, ECB policymaker Francois Villeroy de Galhau said on Tuesday.

The ECB has opened the door to a first rate cut in June as inflation eases back towards its 2% target and financial markets expect three rate cuts over the course of this year.

Villeroy, who is also governor of the French central bank, said after the first rate cut is delivered “barring shocks or surprises” in June, the pace of further moves would be guided by the flow of economic data and decided strictly on a meeting-by-meeting basis.

“That said, we will monitor closely the geopolitical developments in the Middle East, and their possible spillovers on energy prices,” Villeroy told an event at the Economic Club of New York.

“If ever these consequences happened to be lasting and propagating – i.e. affecting underlying inflation – we would have ample room to adjust the pace and the destination, if needed, in the incoming monetary path after the first rate cut.”

(Reporting by Michael Derby; writing by Leigh Thomas; Editing by Benoit van Overstraeten and Jonathan Oatis)

Related Articles

Lilium burnt through huge sums while trying to develop its jet (AFP)

German flying taxi start-up’s rescue deal collapses

A German flying taxi start-up said on Friday it would halt operations...

FILE PHOTO: U.S. Secretary of the Interior Doug Burgum speaks as he attends a signing ceremony with members of the West Virginia Congressional Delegation at the EPA headquarters in Washington, D.C., U.S., February 18, 2025. REUTERS/Kent Nishimura/File Photo

US energy council chief says power plants to produce 15% more electricity

By Valerie Volcovici WASHINGTON (Reuters) – U.S. Interior Secretary and co-chair of...

Cuba has inaugurated a new solar energy park in the capital Havana (AFP)

Cuba opens solar park hoping to stave off blackouts

Cuba on Friday unveiled a new solar energy park in the capital...

FILE PHOTO: Cranes unload imported iron ore from a cargo vessel at a port in Lianyungang, Jiangsu province, China October 27, 2019. REUTERS/Stringer/File Photo

Iron ore heads for weekly gain on brightening demand outlook, China stimulus hopes

By Amy Lv and Lewis Jackson BEIJING (Reuters) -Iron ore futures prices...

Login into your Account

Please login to like, dislike or bookmark this article.