OR European Central Bank has the opportunity to further reduce the interest ratesas consumer prices are now less concerned than in the US, according to a member of the ECB’s Board of Directors, Billerois de Galo.
Billewash has downgraded the risks to inflation by US trade duties, today (20.3.2025) that while economic growth will be reduced, the impact on prices will be “much less strong”. “I am not worried about inflation in Europe,” said Frenchman in a conference in Paris. “Probably the ECB still has room for interest rates. We will see at what rate in this uncertain environment. “
The ECB is considering that it will reduce the deposit rate for the seventh time in this cycle in April, making it to 2.25%. Supporters of such a move see that inflation is on the right track to return to the 2%target, although others are worried not only about US trade policy but also on the impact of much higher costs on defense and infrastructure in Europe.