ECB Official Supports Rate Cut Next Month Amid Slowing Inflation

According to Odaily, European Central Bank (ECB) Governing Council member François Villeroy de Galhau has expressed support for a rate cut next month, following data indicating a significant slowdown in inflation for August. Villeroy stated that the ECB should anticipate future progress in curbing inflation. He expects France's inflation rate to remain at the 2% target level by the first half of 2025, and the eurozone's inflation rate to maintain the same target by the second half of next year. Villeroy remarked, 'In my view, our meeting on September 12 should take action,' adding that deciding to cut rates again would be 'reasonable and prudent.' This statement is one of the clearest commitments to a rate cut for the upcoming meeting. Several other officials have also hinted at the increasing likelihood of a rate cut. Previously, data from Eurostat showed that consumer prices in August rose by 2.2% year-on-year, significantly lower than the 2.6% increase in July.