Divisions within the European Central Bank (ECB) Governing Council surface through comments by policymaker Francois Villeroy de Galhau, hinting at potential interest-rate cuts. This divergence challenges President Christine Lagarde and other policymakers, with some advocating for a cautious approach based on wage data, while others express openness to rate cuts before May. Money markets indicate a high probability of a rate cut by April, with several policymakers scheduled to speak in the coming week.

ECB Rate Cut Dilemma