The euro’s recent appreciation against the dollar would help offset some of the impact of higher oil prices on inflation, he added
Francois Villeroy de Galhau, the head of the Bank of France. Photo: kirill kudryavtsev/Agence France-Presse/Getty Images
The European Central Bank is more likely to lower its key interest rate over the next six months than raise it, unless the eurozone faces a major new shock such as an escalation of the military conflict in the Middle East, the head of the Bank of France said Thursday.
The ECB lowered its key interest rate for the eighth time earlier this month, and indicated that it is nearing the end of that cutting sequence. Since then, Israel has launched a series of attacks on Iran, which has retaliated. The conflict has pushed the price of oil sharply higher, which could revive inflation in the eurozone.
DATE . June/21/2025
