The European Central Bank can’t ignore the economic risks of keeping interest rates high for too long and should begin cutting at one of its next two meetings, according to Governing Council member Francois Villeroy de Galhau.
The French central banker said that while there’s no doubt about the ECB’s determination to return inflation to the 2% target, it should now integrate a secondary objective of ensuring a so-called soft landing for the 20-nation euro-zone economy.