ECB is 'very likely' to reduce interest rates, Villeroy says

BY Reuters | ECONOMIC | 10/09/24 01:48 AM EDT

PARIS, Oct 9 (Reuters) - The European Central Bank (ECB) is very likely to reduce its interest rates next week, policymaker Francois Villeroy de Galhau said on Wednesday.

Villeroy, who is also the head of the French central bank, has said the ECB would likely cut interest rates later this month due to weak economic growth. (Reporting by Dominique Vidalon; Writing by Makini Brice; Editing by Benoit Van Overstraeten)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

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