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

In an interview, ECB board member Villeroy said that the decline in inflation has enabled the ECB to lower interest rates. In addition, the rate of price increases is lower than the average wage level, which is also one of the factors for the rate cut. Villeroy stressed that the ECB's interest rate policy decisions are independent of the Federal Reserve. The evidence is that the ECB began to lower interest rates in early June, while the Federal Reserve only lowered interest rates three months later. With the decline in inflation, we will be able to continue to cut interest rates. The market currently generally expects the ECB to cut interest rates by 25 basis points at its next meeting in December, but weaker data increases the possibility of a 50 basis point cut. (Jinshi)