ECB’s Villeroy says probably more rate cuts, data dependent – “agile pragmatism”

Bank of France Governor François Villeroy de Galhau and European Central Bank Governing Council policymaker.

He spoke in an interview with French radio on Saturday, flagging falling inflation: and further rate cuts ahead:

• we’re on a good way to defeat inflation
• this is actually good news
• may be some temporary rebounds in coming months, but that’s a technical effect
• barring large external shocks, we’ll be a 2% of inflation next year, probably rather toward the beginning of next year

The beginning of next year is barely two months away.

Villeroy also flagged further rate cuts ahead:

• will probably be other rate cuts
• we will decide depending on data

He seems to have had a brainwave:

• “I’m calling for agile pragmatism: Agile because we must move and cut rates when we can. Pragmatism, because we must look at the data and not lose sight of the forest for the trees.”

Sheesh. The economy is coming under increasing downward pressure and the ECB is in go-slow mode trimming tight policy and this guy is thinking up catch phrases.

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