Published by Global Banking & Finance Review®
Posted on February 22, 2025
1 min readLast updated: February 27, 2026
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ECB's Villeroy forecasts deposit rates could hit 2% by summer, enhancing European banks' competitiveness amid economic growth concerns.
PARIS (Reuters) - 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.
"Seen from where we are today, we could be at 2% 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%, and policymakers guided for a further reduction in March as concerns over lacklustre economic growth supersede worries about persistent inflation.
(Reporting by Sudip Kar-Gupta, Editing by Rosalba O'Brien)
Francois Villeroy de Galhau stated that the European Central Bank could potentially lower its deposit rate to 2% by the coming summer.
As of January 30, the European Central Bank cut its deposit rate by 25 basis points to 2.75%.
Villeroy reaffirmed that sector consolidation among European banks could enhance their competitiveness on a global scale.
Concerns over lackluster economic growth are influencing policymakers to consider further reductions in the deposit rate.
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