市场普遍预计欧洲央行将在下个月的会议上第四次降息。由于地缘政治不确定性给前景蒙上阴影，此后的路径尚不明确。European Central Bank committee member Francois Villeroy de Galhau believes that the central bank should continue to cut interest rates, as eurozone inflation may reach 2% in the first half of 2025.
"We have some good news, inflation has slowed down and is moving towards our target," he said on Friday in Dijon. "So we may be able to continue reducing interest rates."
Data released earlier on Friday showed that the eurozone consumer price index rose by 2.3% year-on-year in November. The French central bank governor said, "Within our forecasts - except for monthly changes - we are confident that we will reach our target next year, most likely in the first half of next year."
The market widely expects the European Central Bank to cut interest rates for the fourth time at next month's meeting. Due to geopolitical uncertainties casting a shadow on the outlook, the subsequent path is still unclear.
"Some of you say 'we should speed up,' while others say 'no, we need to be cautious,'" Villeroy said. "I am one of those who believe we must continue cutting interest rates, and we will see the specific pace of rate cuts in the coming months."
