Published by Global Banking & Finance Review®
Posted on April 2, 2025
1 min readLast updated: January 24, 2026
Add as preferred source on GoogleECB's Villeroy states Trump's tariffs won't affect the decline in European inflation, supporting further interest rate cuts as inflation aligns with ECB's target.
PARIS (Reuters) - The U.S. administration's tariff hikes should not derail an ongoing decline in inflation in Europe, ECB policymaker Francois Villeroy de Galhau said on Wednesday, adding that the fall boosted the case for a fresh interest rate cut.
Euro zone inflation eased last month, in line with expectations, to 2.2%, zeroing in on the European Central Bank's 2% target, Eurostat data showed on Tuesday.
"This should give us more confidence to cut interest rates again soon," Villeroy, who is also head of the French central bank, told French regional newspaper Midi-Libre.
"Trumps tariffs shouldn't significantly change the disinflation in Europe," he said.
(Reporting by Leigh Thomas; Editing by Bernadette Baum)
The article discusses how Trump's tariffs are unlikely to impact the ongoing decline in European inflation, according to ECB's Villeroy.
The decline in inflation supports the case for potential interest rate cuts by the ECB.
Euro zone inflation eased to 2.2%, close to the ECB's 2% target.
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