If the European Central Bank adjusts interest rates in the next six months, the move would likely be a cut, ECB policymaker Francois Villeroy de Galhau said on Thursday.
Speaking at the European University Institute in Italy, Villeroy said that barring a major external shock - including possible new military developments in the Middle East - any policy change by the ECB would likely aim to further accommodate growth.
The ECB this month signalled a pause in policy easing, even as projections show inflation dipping below its 2% target, reviving concerns about a return to ultra-low inflation.
Oil prices have surged 7% after Israeli strikes on Iran triggered missile retaliation. Villeroy, who is also governor of the Bank of France, said the ECB would watch closely for energy price spillovers into broader inflation trends.
He noted that the euro’s recent strength helps cushion the impact of rising oil prices: a 10% euro appreciation offsets the inflationary effect of a 10 euro oil price rise.
Market pricing now suggests a greater risk of euro zone inflation undershooting the ECB’s 2% target. ECB forecasts see inflation falling below 2% in Q2 this year and returning to target by 2027, aided by a new emissions trading system.
"In such a context, we need to remain alert and agile in all our next meetings," Villeroy added.
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Australia has become the first country to ban social media for children under 16 years of age, blocking access to platforms including TikTok, Alphabet's YouTube and Meta's Instagram and Facebook on Wednesday (10 December).
At least 19 people were killed and 16 injured as two buildings collapased in Morocco's Fes city according to the state news agency.
The United Nations Security Council has issued warnings about the rapidly worsening humanitarian crisis in Ukraine, citing a sharp surge in civilian casualties amidst Russia's intensified aerial attacks, marking the deadliest period of the war in more than a year.
Heavy artillery fire and deadly skirmishes have shattered a fragile ceasefire agreement along the disputed frontier between Southeast Asian neighbours Thailand and Cambodia, forcing massive evacuations of people to safety and drawing urgent calls for de-escalation from the international community.
Scores of demonstrators gathered outside the Norwegian Nobel Institute in Oslo Tuesday (9 December) to protest against the awarding of this year’s Nobel Peace Prize to Venezuelan opposition leader Maria Corina Machado.
Authorities in Japan lifted all tsunami warnings on Tuesday following a strong 7.5-magnitude earthquake that struck off the northeastern coast late on Monday, injuring at least 30 people and forcing around 90,000 residents to evacuate their homes.
Pressure is mounting between Venezuela and the United States as both nations emphasise military preparedness and strategic positioning.
Tehran has protested to Washington because of the travel ban on its football team delegation as well as Iranian fans who would like to travel to the United States for the upcoming World Cup matches in 2026.
Paramount Skydance (PSKY.O) has launched a $108.4 billion hostile takeover bid for Warner Bros Discovery (WBD.O). The escalation follows a high-stakes battle that had appeared to end last week when Netflix secured a $72 billion deal for the studio giant’s assets.
China has carried out a major test of a new “super wireless” rail convoy, a technology that could reshape the future of heavy-haul transport.
Paramount Skydance (PSKY.O) has launched a $108.4 billion hostile takeover bid for Warner Bros Discovery (WBD.O). The escalation follows a high-stakes battle that had appeared to end last week when Netflix secured a $72 billion deal for the studio giant’s assets.
U.S. industrial production rose by 0.1% in September, rebounding after a decline in August, while capacity utilisation remained unchanged, according to Federal Reserve data on Wednesday.
Google’s YouTube has announced a “disappointing update” for millions of Australian users and creators, confirming it will comply with the country’s world-first ban on social media access for under-16s by locking affected users out of their accounts within days.
President of Turkmenistan Serdar Berdimuhamedow has signed the “On Virtual Assets” law, which will officially legalise cryptocurrency mining and exchange activities in the country from 1 January 2026.
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