The European Central Bank (ECB) could lower its deposit rate to 2% by summer, according to Bank of France head and ECB policymaker François Villeroy de Galhau. In an interview with Alternatives Economiques, Villeroy stated, "Seen from where we are today, we could be at 2% by the coming summer."
His remarks come after the ECB cut its deposit rate by 25 basis points to 2.75% on January 30, with policymakers signaling another reduction in March. The central bank's shift toward easing monetary policy reflects growing concerns over sluggish economic growth, despite ongoing inflation risks.
Villeroy also emphasized the need for European bank consolidation to enhance global competitiveness. His comments align with broader discussions on strengthening the eurozone’s financial sector amid evolving economic conditions.
The ECB’s rate-cut trajectory signals a departure from its previous tightening cycle, driven by inflation control. As growth concerns mount, investors and analysts will closely monitor upcoming policy decisions and their potential impact on the European economy.


Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets
Trump Threatens 50% Tariff on Canadian Aircraft Amid Escalating U.S.-Canada Trade Dispute
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated
Jerome Powell Attends Supreme Court Hearing on Trump Effort to Fire Fed Governor, Calling It Historic
Indonesian Stocks Plunge as MSCI Downgrade Risk Sparks Investor Exodus
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal
BOJ Holds Interest Rates Steady, Upgrades Growth and Inflation Outlook for Japan
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 



