European Central Bank (ECB) policymaker Francois Villeroy de Galhau stated on Monday that the central bank still has “a margin for rate cuts” in the Eurozone, suggesting potential future policy flexibility.
In his comments, Villeroy acknowledged the current climate of significant economic uncertainty but downplayed concerns about rising inflation in the region. He also expressed confidence that neither France nor the broader Eurozone is facing an imminent recession.
Villeroy took aim at US policies, particularly President Trump’s protectionist stance, arguing that these measures have not been effective in addressing economic challenges.
Market Response
Despite Villeroy’s remarks, the Euro remained largely unaffected, with EUR/USD climbing by 0.10% to trade near 1.1375 at the time of writing.
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