The European Central Bank is expected to cut interest rates again this week, as concerns over euro zone inflation fade and worries about sluggish growth grow.
Inflation fell to 1.8 percent in the 20-member eurozone in September, the first time it has been below the ECB’s two percent target since 2021.
Although the rate is expected to rise again by the end of the year, there is a heightened sense that consumer prices are back under control.
“Victory against inflation is in sight,” said last week the governor of the French central bank, Francois Villeroy de Galhau, who sits on the ECB’s rate-setting board.
“A cut is very likely,” he said on Franceinfo radio, adding that “it won’t be the last”.
ECB policymakers will meet in Slovenia on Thursday to decide whether to cut rates further and speed up the rate cut. The central bank is headquartered in Frankfurt, but sometimes holds monetary policy meetings in other parts of the eurozone
