ECB/Villeroy: Keeping the Door Open for a Bigger Rate Cut in December

Forex - European Central Bank (ECB) policy maker Francois Villeroy de Galhau stated that the ECB should keep its options open for a larger interest rate cut next month, indicating that the policy rate could ultimately drop again to a level that would stimulate growth. In a speech at the Bank of France, which he also heads, Villeroy emphasized that the size of the cut should remain flexible, depending on incoming data, economic projections, and risk assessments, saying, "From today's perspective, there are all kinds of reasons to proceed with a cut on December 12." Financial market pricing indicates that investors expect the central bank to lower borrowing costs by at least a quarter point at its meeting on December 12.