“展望未来我认为路径是明确的——我们应该继续降低货币政策的限制程度。”他说，“但步伐必须由灵活的实用主义来决定：我们对即将举行的会议保持完全的可选择性。”Member of the European Central Bank's Governing Council, Francois Villeroy de Galhau, stated that the potential trade tariffs during Donald Trump's second presidential term will not disrupt the European Central Bank's plans for easing policies.
The French central banker said at a meeting in Tokyo on Thursday that the tariffs that the USA may raise are not expected to significantly change Europe's inflation outlook, and the risks of rising prices and economic growth are 'shifting toward a weaker direction.' 'Based on this assessment, our Governing Council decided on October 17 to reduce the deposit facility rate by 25 basis points to 3.25%, this is the third rate cut, but it won't be the last one.' he said.
Villeroy reiterated in his speech in Tokyo that the European Central Bank should not pre-commit to specific steps.
'Looking ahead, I believe the path is clear - we should continue to lower the degree of restriction of monetary policy.' he said, 'But the pace must be determined by flexible pragmatism: we maintain complete optionality regarding upcoming meetings.'
Villeroy also stated that Wednesday's strong wage data from the euro area met the European Central Bank’s expectations.
'I want to emphasize that the latest growth in negotiated wages for the third quarter is a somewhat backward-looking indicator, mainly driven by the lagging effects of past negotiations in Germany.' he said, 'We have already taken this into account in our September forecasts.'
