The European Central Bank (ECB) could lower its deposit rate to 2% by summer, according to Bank of France head and ECB policymaker Francois Villeroy de Galhau.
In an interview published on Saturday, Villeroy stated that the rate could reach 2% by summer. He also emphasized the importance of European bank consolidation to enhance global competitiveness.
On January 30, the ECB reduced its deposit rate by 0.25% to 2.75%. Policymakers have indicated a further cut in March, prioritizing concerns over slow economic growth over persistent inflation.