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ECB MEMBER: INTEREST RATE CUT STILL ON THE TABLE DESPITE CURRENT CHALLENGES

European Central Bank Governing Council member François Villeroy de Galhau told the Financial Times on Tuesday that several important statements related to the path of monetary policy and the geopolitical situation in the Middle East were made, most notably:

💬Further interest rate cuts are still possible despite the current circumstances.

💬The ECB's inflation forecast remains moderate.

💬The recent rise in oil prices has partially offset the "significant appreciation" of the euro.

💬If a ceasefire between Iran and Israel is confirmed, the ECB may implement further monetary policy easing over the next six months.

💬Oil prices alone are not sufficient evidence for ECB decisions.

💬The neutral price and the final price are not exactly the same.

💬We will monitor developments and decide accordingly.