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.
Armenian Prime Minister Nikol Pashinyan's Civil Contract party has won the Armenian elections, picking up nearly half the vote. With a majority in p...
Uzbekistan and Russia have agreed to deepen cooperation in agriculture, energy and food security following high-level meetings held during the St Pete...
Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said on Monday that the U.S. would bear direct responsibility for any escalation in West Asia a...
UK Prime Minister Sir Keir Starmer has hosted Ukrainian President Volodymyr Zelenskyy, French President Emmanuel Macron and German Chancellor Friedric...
Four Palestinians, including an eight-year-old boy, were killed in Israeli strikes across Gaza on Monday (8 June), according to local health officials...
Armenian Prime Minister Nikol Pashinyan's Civil Contract party has won the Armenian elections, picking up nearly half the vote. With a majority in parliament, Pashinyan is set for a third term as Prime Minister. But an opposition politican has said he will challenge the election results.
Uzbekistan and Russia have agreed to deepen cooperation in agriculture, energy and food security following high-level meetings held during the St Petersburg International Economic Forum (SPIEF) 2026.
Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said on Monday that the U.S. would bear direct responsibility for any escalation in West Asia after Iran and Israel resumed strikes for the first time since the April ceasefire.
UK Prime Minister Sir Keir Starmer has hosted Ukrainian President Volodymyr Zelenskyy, French President Emmanuel Macron and German Chancellor Friedrich Merz for high-level talks in Westminster focused on ending the war in Ukraine.
Counting is underway in Armenia's elections. The results of the vote are set to determine the political direction of the country of three million people for the next few years. Prime Minister Nikol Pashinyan is hoping to fend off challenges from several pro-Russia candidates to secure a third term.
Armenian Prime Minister Nikol Pashinyan's Civil Contract party has won the Armenian elections, picking up nearly half the vote. With a majority in parliament, Pashinyan is set for a third term as Prime Minister. But an opposition politican has said he will challenge the election results.
Azerbaijan's Foreign Ministry has confirmed the number of casualties its citizens suffered as a result of the 5 June drone attacks on the cargo ships Natra and Zircon in the Sea of Azov. In a statement, it said four Azerbaijani citizens were killed and four others were injured.
The results of Armenia’s parliamentary elections will determine the makeup of the National Assembly and shape the country's political direction for the foreseeable future. But in Armenia, the final result is not decided by vote percentages alone. Here's how it works.
For about three decades after the Soviet collapse, Armenia anchored its foreign and security policy to Moscow.
Chinese carmakers are rapidly reshaping the global automotive market, with record exports, soaring electric vehicle sales and growing investments overseas putting pressure on established European, Japanese and U.S. rivals.
The International Labour Organization (ILO) has begun its latest round of negotiations on creating the first binding global standards for platform-based work, covering services such as ride-hailing, food delivery and other app-based work.
European companies are continuing to deepen their presence in China, with nearly seven in ten firms maintaining or expanding their supply chains despite global efforts to diversify, according to a new survey by the EU Chamber of Commerce.
BP has removed its chair, Albert Manifold, with immediate effect, citing concerns over governance and conduct. The company said its board had unanimously decided that Manifold should no longer serve as chair or director.
The dual-class share structure outlined in SpaceX’s initial public offering (IPO) filing, which gives chief executive Elon Musk outsized control, has reignited one of Wall Street’s longest-running debates over corporate governance.
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