Bank of France: Inflation in eurozone moving towards ECB’s 2% target

The European Central Bank (ECB) is likely to cut key interest rates in 2024 as eurozone inflation heads toward the regulator’s 2% target, said the head of the Bank of France and member of the ECB management François Villeroy de Galhau, Report informs referring to Interfax.

“We have made progress in terms of containing the pace of price increases,” he told French news channel LCI. “We are moving away from an emergency fight against inflation and are likely to lower rates this year.”

He added that the French economy will “gradually gain growth” in the coming months, as the average rate of wage increases in the country has begun to outpace the rate of inflation.

The Bank of France expects the country’s economy to avoid recession in 2024 and grow by about 0.9%, he said.