Francois Villeroy de Galhau, a member of the European Central Bank's Governing Council, has expressed the view that the ECB should pursue further interest rate cuts due to the projected approach of euro-area inflation to the 2% target in the first half of 2025.

Speaking in Dijon, he highlighted the positive trend in inflation, stating that it has slowed and is moving towards the target. Villeroy's comments indicate a positive outlook for monetary policy adjustments, reinforcing the possibility of continued rate reductions.

This development occurs as the ECB aims to navigate the economic landscape while maintaining its inflation objectives.