French Central Banker Hints at Further Rate Cuts Amid Global Uncertainty

Despite US President Donald Trump's tariff threats causing global uncertainty, the euro zone still has room to lower interest rates as inflation declines, said French central bank president and European Central Bank (ECB) policymaker Francois Villeroy de Galhau.

"We still have a gradual margin to lower interest rates," Villeroy said in an interview with RTL radio on Monday.

ECB policymakers are increasingly confident that interest rates will be cut further in June as inflation continues to slow. However, six Reuters sources noted last week that a sharp rate cut is not expected.

In early April, the ECB lowered its key interest rate to 2.25 percent.

Interest rate decisions are made by the Governing Council of the European Central Bank, which includes the six members of the ECB's Executive Board and the governors of the central banks of all euro zone countries.