European Central Bank (ECB) policymaker Francois Villeroy de Galhau indicated in a recent interview that there may be room for another rate cut by the ECB by the summer. The discussion took place with the EBRA newspaper group on Tuesday.

Villeroy, who also holds the position of head of the Bank of France, shared his insights on potential inflation trends in the United States and Europe. He suggested that the U.S. might experience a surge in inflation due to the tariffs imposed by President Donald Trump's administration. However, he expressed confidence that Europe would remain unaffected by this trend.

He stated, "We also don't see inflation picking up. The Trump administration's protectionism will lead to a restart of inflation in the United States, but not in Europe, which will likely allow for another rate cut by the summer."

The next monetary policy meeting of the ECB is scheduled to conclude on June 5. The possibility of another rate cut by the ECB will likely be a key topic of discussion during this meeting.

Source: Investing.com