European Central Bank (ECB) Governing Council member and Bank of France President, Francois Villeroy de Galhau, noted on Friday that nobody suggested rate cuts at the last policy meeting, per Reuters.

Key takeaways

"ECB in the latest meeting wanted to express a message of confidence and patience."

"The important signal on Thursday was the changed inflation outlook."

"We will bring inflation back down to 2% target by 2025."

"Monetary policy transmission is slightly faster than initially expected."

"We are on a plateau and have to take the time to enjoy the view."

"We will be guided by data, not by calendar aspects, when determining next monetary policy steps."

"Next policy move should be a lowering of rates unless there are surprises."

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen trading flat on the day at around 1.0990.