First ECB rate cut on June 6 “barring any surprises” estimates Villeroy de Galhau

“Unless there is a surprise, we should decide on a first cut at our next meeting on June 6,” said Mr. Villeroy de Galhau, who sits on the ECB Governing Council.

The governor of the Bank of France justifies this approach by “increasing confidence in the trajectory of disinflation”.

Inflation is getting closer to the ECB's medium-term target of 2%: it continued to decline in March in the euro zone, to 2,4% over one year, according to the latest figures from Eurostat.

In France, the consumer price index increased by 2,3% year-on-year last month according to INSEE, a clear slowdown compared to February. “We are winning the battle against inflation,” welcomes Mr. Villeroy de Galhau.

While maintaining its interest rates at their historic high, the ECB prepared the ground on Thursday for a first cut from June. This decline "should be followed by other declines between now and the end of the year", estimates the governor who "pleads for a pragmatic gradualism - according to economic data - and sufficiently agile".

Mr. Villeroy de Galhau also returned to the weight of the French debt, while the government seeks to make savings to limit the public deficit, now expected at 5,1% of GDP for 2024. "The weight of the interests of the debt that we have to pay every year (...) will increase by almost 50 billion between 2020 and 2027", notes the governor, "this is as much as we cannot devote to our future expenses, such as the climate or education.

Mr. Villeroy de Galhau also defended the "common sense" criteria governing the French real estate loan market, at its lowest level in almost 10 years.

A bill from Renaissance MP Lionel Causse aimed at reforming the High Financial Stability Council (HCSF), which lays down, among other things, rules governing the granting of real estate loans, will be examined in the National Assembly on April 29.