Gold prices edge higher on raised Fed rate cut hopes
Investing.com -- The European Central Bank (ECB) is considering another reduction in borrowing costs, as the concern over consumer prices is less in Europe compared to the United States. This information was shared by Francois Villeroy de Galhau, a member of the ECB’s Governing Council.
On Thursday, Villeroy expressed his views on the inflation risks posed by American trade tariffs. He suggested that while these tariffs might hinder economic growth, their impact on prices is expected to be much less significant.
The French policymaker, speaking at a conference in Paris, said he was not concerned about inflation in Europe. He further hinted that the ECB might still have room for rate cuts, but the pace would be determined by the prevailing uncertain environment.
The ECB is deliberating on whether to lower its deposit rate for the seventh time in this cycle in April, potentially bringing it down to 2.25%. Those in favor of such a move believe inflation is well on its way to returning to the 2% target. However, others express concerns not only about US trade policy but also about the effects of significantly increased defense and infrastructure spending in Europe.
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