ECB’s Villeroy: We are not on a pre-set course on rates

• There is a plausible consensus that we will act at each meeting
• Among major central banks, ECB has the simplest course
• Our view on inflation is quite assured
• Staying vigilant but not worried about inflation
• Progress towards victory against inflation is on track
• If we are decisive about the pace of rate cuts, we don’t need larger ones
• But would not rule out larger rate cuts in the future

He is just delivering a reminder to markets that the ECB will be cutting rates next week and in all likelihood, another one after in March at the very least.

This article was written by Justin Low at www.forexlive.com.