ECB’s Villeroy flags economic risk of cutting rates too late

Villeroy is among a small group saying a move at April’s gathering is still possible, while acknowledging June is more likely

Governor of the Bank of France Francois Villeroy de Galhau (Photo by ERIC PIERMONT/AFP via Getty Images)

The European Central Bank can’t ignore the economic risks of keeping interest rates high for too long and should begin cutting at one of its next two meetings, according to Governing Council member Francois Villeroy de Galhau.

The French central banker said that while there’s no doubt about the ECB’s determination to return inflation to the 2% target, it should now integrate a secondary objective of ensuring a so-called soft landing for the 20-nation euro-zone economy.