During a speech at the World Economic Forum (WEF) in Davos on Tuesday, European Central Bank (ECB) Governing Council member and Bank of France President, Francois Villeroy de Galhau, expressed caution, stating that it is “too early to declare victory over inflation.”
Villeroy de Galhau further commented on the global economic situation, noting, “We can see a soft landing on both sides of the Atlantic.” Regarding interest rates, he emphasized that they should not be higher than the current levels.
In a forward-looking statement, the ECB official hinted at potential future policy moves, stating, “Barring major surprises – we look at the Middle East – our next move will be a cut, probably this year. I will not comment on the season.”
Market Reaction:
The EUR/USD pair displayed little impact following Villeroy de Galhau’s comments, maintaining lower ground near 1.0910, reflecting a 0.32% decrease for the day.
