ECB's Villeroy says further rate cuts still possible despite present conditions ...Middle East

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Inflation expectations remain moderateRecent uptick in oil prices has partly offset the "significant" appreciation in the euroIf Iran-Israel ceasefire is confirmed, possible for further policy accommodation in the next six monthsOil price alone is not a sufficient enough guide for our reaction functionA neutral rate and a terminal rate are not exactly the same thingWe will see how things evolve

The full interview can be found here (may be gated). They're playing their cards close to their chest and keeping their options open for now. As things stand, markets are just pricing in ~23 bps of rate cuts by year-end.

This article was written by Justin Low at www.forexlive.com.

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