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.
The United Nations Security Council on Saturday adopted Resolution 2797 (2025), renewing the mandate of the United Nations Mission for the Referendum ...
An explosion believed to be intentional struck the Harvard University Medical School’s Goldenson Building in Boston early Saturday, with two people ...
Amid rising geopolitical tensions and growing uncertainty in the global trade system, Asia-Pacific leaders concluded the annual APEC summit on Saturda...
A man and a woman were killed and several others injured in a shooting on the Greek island of Crete on Saturday, in what police officials described as...
As the U.S. federal government shutdown enters another critical stage, millions of low-income Americans face the possibility of losing their Supplemen...
The United Nations Security Council on Saturday adopted Resolution 2797 (2025), renewing the mandate of the United Nations Mission for the Referendum in Western Sahara (MINURSO) for one year until October 31, 2026.
Amid rising geopolitical tensions and growing uncertainty in the global trade system, Asia-Pacific leaders concluded the annual APEC summit on Saturday with a joint declaration emphasizing resilience and shared benefits in trade.
A man and a woman were killed and several others injured in a shooting on the Greek island of Crete on Saturday, in what police officials described as a family vendetta, reviving memories of the island’s long and complex history of inter-family violence.
As the U.S. federal government shutdown enters another critical stage, millions of low-income Americans face the possibility of losing their Supplemental Nutrition Assistance Program (SNAP) benefits.
Reports from CNN say the Pentagon has approved the provision of long range Tomahawk missiles to Ukraine after assessing its impact on U.S. stockpiles, while leaving the ultimate decision to President Trump.
Tanzanian police fired tear gas and live rounds on Thursday to disperse protesters in Dar es Salaam and other cities, a day after a disputed election marked by violence and claims of political repression, witnesses said.
The U.S. State Department has ordered the departure of all non-emergency personnel and their family members from Mali, citing escalating security risks as al Qaeda-linked insurgents tighten a fuel blockade on the country.
Torrential rain battered New York on Thursday, leaving two people dead, Mayor Eric Adams confirmed, as severe storms disrupted flights and prompted flood warnings across parts of the city.
The United Nations has warned of a catastrophic humanitarian situation in Sudan after reports emerged of mass killings, sexual violence, and forced displacements following the capture of al-Fashir by the Rapid Support Forces (RSF).
Chinese electric carmaker BYD is making major strides in Europe, with sales surging nearly fivefold in September from a year earlier to just under 25,000 new registrations.
U.S. stocks were mixed late Wednesday as traders digested comments from Federal Reserve Chair Jerome Powell, who signaled that another interest rate cut in December is far from guaranteed. The Dow Jones Industrial Average and S&P 500 edged slightly lower, while the Nasdaq climbed on continued gains
U.S. chipmaker Nvidia has made history by becoming the first company in the world to reach a market value of 5 trillion dollars, driven by soaring demand for artificial intelligence technologies.
Nokia announced on Tuesday that chipmaker Nvidia will acquire a $1 billion stake in the company.
Türkiye’s main stock index, BIST 100, closed on Friday at 10,941.79 points, recording a 3.14% increase.
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