ECB to Continue Rate Cuts Amid Economic Challenges

The European Central Bank (ECB) plans to further reduce interest rates next year, according to ECB policymaker Francois Villeroy de Galhau. The central bank is comfortable with market expectations for future rates, aiming to support the euro zone economy affected by political and trade uncertainties.

The European Central Bank is set to continue its policy of lowering interest rates in the coming year, announced ECB policymaker Francois Villeroy de Galhau on Friday.

Speaking on BFM business radio, Villeroy confirmed, "There will be further rate cuts," highlighting the bank's confidence in current market projections for interest rates.

This decision follows the ECB's latest rate cut, the fourth this year, as part of its response to economic challenges posed by domestic political instability and the looming threat of a new trade conflict with the United States.

(With inputs from agencies.)