Eurozone Challenges Prompt Villeroy’s Forecast of Further ECB Cuts

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European Central Bank (ECB) policymaker François Villeroy de Galhau indicated on Friday that additional interest rate cuts are expected in the coming year.

 Speaking to BFM Business Radio, Villeroy expressed comfort with market expectations regarding future rate trends, stating, "Further rate cuts will come," and, "We are rather at ease with market projections on interest rates."

This follows the ECB's fourth rate cut of the year on Thursday, as the central bank remains open to more easing measures to counter the eurozone's economic challenges.

Persistent political instability within the region and the looming risk of a new U.S. trade war continue to weigh on economic activity.

Paraphrasing text from "Reuters" all rights reserved by the original author.