ECB's Villeroy: Falling inflation allows ECB to cut rates

The European Central Bank (ECB) Governing Council member Villeroy de Galhau said in an interview that the decline in inflation allows the ECB to lower interest rates, and the pace of price increases is lower than the average wage level, which is also a factor for rate cuts. Villeroy emphasized that the ECB's interest rate policy is independent of the Federal Reserve. The evidence is that the ECB began to lower interest rates in early June, while the Federal Reserve did not cut rates until 3 months later. As inflation declines, we will be able to continue cutting rates. The market generally expects the ECB to cut rates by 25 basis points at its next meeting in December, but weaker data has increased the possibility of a 50 basis point cut. ()