ECB’s Villeroy says Middle East stress should not delay June rate cut, with more to follow

Governor of the Bank of France and therefore a European Central Bank Governing Council member Francois Villeroy de Galhau in an interview with French media, Les Echos.

• “At the moment, the conflict is not leading to a marked rise in oil prices. If this were ever the case, we would have to analyse monetary policy for whether this shock is temporary and limited, or whether it is transmitted – beyond commodities – to underlying inflation”

He favours a rate cut at the ECB’s June meeting.

• “Barring surprises, there is no need to wait much longer”
• “It should be followed by further cuts, at a pragmatic pace”

A June rate cut from the Bank is becoming increasingly signalled by Governing Council members.

This article was written by Eamonn Sheridan at www.forexlive.com.