Latest news with #FrancoisVilleroydeGalhau
Bloomberg
4 days ago
- Business
- Bloomberg
Bank of France Recommends Cutting Regulated Savings Rate to 1.7%
France is set to cut the rate on its popular regulated savings products, following a recommendation from the central bank. The return on so-called Livret A and LDDS accounts should be lowered next month to 1.7% from 2.4%, Bank of France Governor Francois Villeroy de Galhau said in a statement on Wednesday.
Bloomberg
19-06-2025
- Business
- Bloomberg
ECB's Villeroy Says If Policy Needs to Change, Loosening More Likely
The European Central Bank is more likely to further loosen policy if it makes a move in the coming months, as it seeks to remain agile after returning inflation to target, Governing Council member Francois Villeroy de Galhau said. 'Barring a major exogenous shock, including possible new military developments in the Middle East, if monetary policy were to move in the next six months, it would be more in the direction of accommodation,' the French central banker said in a speech at the European University Institute in Florence.
Irish Independent
18-06-2025
- Business
- Irish Independent
Oil volatility could affect ECB rate cuts, warns French bank chief
Markets relatively stable despite Israel-Iran unrest The European Central Bank (ECB) needs to assess fluctuations in oil prices and the euro as it sets borrowing costs, according to Governing Council member Francois Villeroy de Galhau. While the ECB doesn't target a particular exchange rate, the common currency has demonstrated surprising strength against the dollar since US president Donald Trump began his tariff push.
Reuters
11-06-2025
- Business
- Reuters
French central banks trims growth outlook on trade tensions
PARIS, June 11 (Reuters) - France's economy will slow more sharply this year than previously expected as U.S. trade tensions hit demand for French exports, the central bank said on Wednesday in its quarterly outlook. After expanding 1.1% last year, the euro zone's second-biggest economy is set to grow only 0.6% this year, the Bank of France forecast, revising its estimate down from 0.7% projected three months ago. The central bank estimated that U.S. tariff threats and associated economic uncertainty would cost the French economy 0.4 percentage points of GDP cumulatively through 2027, with half of that impact already factored into previous forecasts. Most of the hit to growth came not directly from tariffs, but rather the general climate of uncertainty around tariffs, the Bank of France said, adding its calculations were based on assumptions that tariffs would remain at the 10% level the Trump administration has threatened. "This unpredictability amplifies the French and European challenge of sluggish growth, which has existed for too long," Bank of France Governor Francois Villeroy de Galhau said in an interview with Les Echos business newspaper. The central bank said its monthly business climate survey suggested that the economy would grow only 0.1% in the second quarter, unchanged from the first quarter. Looking beyond this year, growth was expected to strengthen to 1.0% in 2026 and 1.2% in 2027, down from March projections of 1.2% and 1.3% respectively. This year economic activity would be supported by domestic demand and companies rebuilding low inventories, while foreign trade would weigh negatively on growth. The recovery in 2026 and 2027 would be driven by real wage gains boosting consumer demand while private investments - mainly home purchases - would benefit from lower interest rates. Inflation forecasts were also cut as lower power and oil prices weigh on the outlook with EU harmonized consumer price inflation expected to average only 1.0%, down from 1.3% previously. In 2026, inflation was seen at 1.4% and 1.8% in 2027, down respectively from 1.6% and 1.9%.
Bloomberg
29-05-2025
- Business
- Bloomberg
ECB's Villeroy Says More Rate Cuts Possible in Coming Weeks
European Central Bank Governing Council member Francois Villeroy de Galhau said more reductions in borrowing costs could be on the way, with little sign at present of upward pressure on consumer prices. President Donald Trump's tariffs will drive up inflation in the US but won't have such consequences for Europe, the French official said. 'We don't see inflation restarting in Europe,' he told online channel Backseat on Wednesday.
