European Central Bank (ECB) Governing Council member and Bank of France Governor Francois Villeroy de Galhau (pictured) said on Wednesday that the neutral interest rate in the Eurozone could be reached by summer if the projected downward trend in inflation persists in the months ahead.
"If the pullback in inflation is confirmed in the coming quarters as we expect, common sense would have us heading towards the neutral rate without slowing the pace [of rate cuts] by summer," Villeroy stated at the French central bank event.
The central banker pointed out that the latest rise in Eurozone's inflation was expected, ensuring that it does not "call into question our victory over inflation."
