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ECB Governing Council member Francois Villeroy de Galhau, in an interview with LCI television, anticipates reducing interest rates within the year, marking a significant move away from the aggressive inflation-fighting measures.

“We will probably cut rates this year because we are making progress against inflation,” Villeroy stated.

“We are exiting the emergency of fighting inflation and are on the right path to overcome the sickness,” he elaborated.

Further bolstering this positive outlook, Villeroy projected gradual acceleration in economic growth in France in the coming months, fueled by decline in inflation rates that is expected to fall below pace of wage increases.

Bank of France’s forecast, as mentioned by Villeroy, anticipates avoiding a recession, with an expected expansion rate of about 0.9% for the year.

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