Drumbeat for ECB interest rate cuts restarts as bond yields fall

Calls for interest cuts come as government debt markets reflect on slowing eurozone inflation

The governor of the French central bank conceded that official rates were heading lower in 2024, adding to pressure on the ECB to cut interest rates. 

The drumbeat for European Central Bank (ECB) interest rate cuts has restarted as government debt markets reflected on slowing eurozone inflation, and as the governor of the French central bank conceded that official rates were heading lower in 2024.

ECB governing council member François Villeroy de Galhau said the central bank should lower borrowing costs next year, after keeping them at their peak long enough to ensure it has beaten down inflation.