The European Central Bank (ECB) is likely to reduce interest rates at its upcoming meeting later this month, according to Francois Villeroy de Galhau, a member of the ECB's Governing Council. This statement comes as inflation rates in the Eurozone fell below the ECB's target of 2% in September.
Villeroy, who also serves as the head of the Bank of France, indicated in an interview with La Repubblica that the core measure of price increases is expected to gradually approach the target level by 2025. This potential rate cut could have significant implications for the Eurozone economy, influencing borrowing costs and consumer spending across member countries.
The anticipated decision reflects the ECB's ongoing efforts to manage inflation and stimulate economic growth in a challenging global economic environment. As central banks worldwide adjust their monetary policies in response to economic conditions, the ECB's actions will be closely monitored by international markets.