ECB Set to Trim Interest Rates as Inflation Eases

The European Central Bank is expected to cut interest rates next week. Policymaker Francois Villeroy de Galhau emphasized further reductions, influenced by weakening economic growth and quicker-than-expected inflation reduction. The bank has already cut rates twice this year with more easing anticipated in October and December.

The European Central Bank (ECB) is poised to reduce interest rates next week, as per ECB policymaker Francois Villeroy de Galhau's statement on Wednesday.

Speaking to franceinfo radio station, Villeroy indicated that not only is a rate cut imminent, but more reductions could follow, contingent upon the ongoing battle against inflation.

Villeroy, who heads the French central bank, noted that weak economic growth is a key factor in the anticipated rate cuts. The ECB has already executed two rate reductions this year amid unexpectedly swift inflation easing, with markets anticipating further cuts in October and December.

(With inputs from agencies.)