ECB's Villeroy says the Financial institution could cut back its deposit price to 2% by summer time

The European Central Financial institution (ECB) could cut back its deposit price to 2% by summer time, based on Francois Villeroy de Galhau, head of the Financial institution of France and an ECB Governing Council member.

In an interview with Alternate options Economiques, Villeroy acknowledged that based mostly on the present outlook, a 2% price could possibly be reached by mid-year.

He additionally reiterated that banking sector consolidation in Europe may improve competitiveness on a worldwide scale.

***

Background to that is that on January 30, the ECB lowered its deposit price by 25 foundation factors to 2.75%, with policymakers signaling one other price minimize in March, as financial development considerations outweigh inflation fears.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



Source link