The European Central Bank could cut its deposit rate down to 2 per cent by this summer, said Bank of France head and ECB policymaker Francois Villeroy de Galhau in an interview published over the weekend.
“Seen from where we are today, we could be at 2 per cent by the coming summer,” he told the magazine Alternatives Economiques.
Villeroy also reaffirmed that sector consolidation among European banks could make them more competitive on a global level.
On January 30, the European Central Bank cut its deposit rate by 25 basis points to 2.75 per cent, and policymakers guided for a further reduction in March as concerns over lacklustre economic growth supersede worries about persistent inflation.
