The European Central Bank (ECB) could lower its deposit rate to 2% by summer, according to Bank of France head and ECB policymaker François Villeroy de Galhau. In an interview with Alternatives Economiques,

The European Central Bank is getting closer to a pause in interest cuts since it is no longer clear that policy remains restrictive and energy price surges raise inflation risks, ECB board member Isabel Schnabel has said.

There’s no need to hold back on European Central Bank interest rate cuts as the 2% price target is in sight and inflation risks are to the downside, Governing Council member Fabio Panetta said.

The European Central Bank could cut its deposit rate down to 2% by this summer, said Bank of France head and ECB policymaker Francois Villeroy de Galhau in an interview published on Saturday.