Trump tariffs won’t derail fall in European inflation, ECB’s Villeroy says

PARIS (Reuters) – The U.S. administration’s tariff hikes should not derail an ongoing decline in inflation in Europe, ECB policymaker Francois Villeroy de Galhau said on Wednesday, adding that the fall boosted the case for a fresh interest rate cut.

Euro zone inflation eased last month, in line with expectations, to 2.2%, zeroing in on the European Central Bank’s 2% target, Eurostat data showed on Tuesday.

“This should give us more confidence to cut interest rates again soon,” Villeroy, who is also head of the French central bank, told French regional newspaper Midi-Libre.

“Trumps tariffs shouldn’t significantly change the disinflation in Europe,” he said.

(Reporting by Leigh Thomas; Editing by Bernadette Baum)