ECB Governing Council member Francois Villeroy de Galhau, in an Ecorama radio interview, stated, “Barring shocks or surprises, rate hikes are over. However, he emphasized that “doesn’t mean a quick rate cut.” He further clarified, “We are not guided by a calendar, we are guided by data,” and called for “confidence and patience.”
Villeroy also commented on the pace of disinflation, noting it is occurring “a little quicker than expected,” largely due to the faster-than-anticipated transmission of monetary policy. He concluded, “In other words, monetary policy is effective.”
Madis Muller, another ECB Governing Council member, expressed the view that markets might be “a bit optimistic” about the prospects of early rate cuts. This sentiment was echoed by Robert Holzmann, who stated that there were no discussions about rate cuts among policymakers. Holzmann also mentioned that a majority of the Council members perceive upside risks to inflation.
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