Cut to avoid risk of falling behind curve (Il Sole 24 Ore Radiocor) - New York, 18 Apr - The European Central Bank should cut interest rates in June barring a major surprise, ECB policymaker Francois Villeroy de Galhau told CNBC.

'The question is the next Governing Council which will be early June ... and here barring a major surprise we should cut rates because we are now confident enough and increasingly confident about the disinflationary path in the euro area,' he said talking to CNBC on the sidelines of the International Monetary Fund Spring Meetings.

He said there was a very large consensus that it was time to take this "insurance" against what he called the second risk.

'... the second risk would be to be behind the curve and to pay a too high cost in terms of economic activity and employment,' he told CNBC.

His comments come after ECB President Christine Lagarde said the bank remained on course to cut interest rates in the near term, subject to any major shocks.

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(RADIOCOR) 18-04-24 17:28:13 (0584) 5 NNNN