ECB's Villeroy: Timing and size of ECB rate cuts depend on data

Eren Sengezer FXStreet

European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Wednesday that the timing and the size of the ECB rate cuts will depend on data.

Villeroy further reiterated that they will be at the 2% inflation target in the coming year.

Earlier in the day, ECB Vice President Luis de Guindos said that while increasing defense spending across Europe was the "number one priority", he noted that there is a need to guarantee budget stability in accordance with the bloc's fiscal rules, per Reuters.

Market reaction

EUR/USD showed no immediate reaction to these comments and was last seen losing 0.4% on the day near 1.0900.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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