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ECB’s Villeroy: Rate Cuts Will Occur ‘in Due Time’
European Central Bank Governing Council member François Villeroy de Galhau on Thursday said that interest rate cuts would come but that rates would first have to stay high for a while. In an interview with French regional daily Le Républicain Lorraine, Villeroy, who heads the Banque de France, said that to treat the ‘disease’ of inflation, it was ‘necessary to combine the dose and the duration: regarding the dose, unless there is another shock, it is over, there will be no further increase.’ ‘On the other hand, it takes time for the remedy to work: the cut in rates will come in due time’, he said. ... (full story)