Small font size A Larger text size A Largest text size A

ECB's Villeroy: more interest rate cuts to come

BY Reuters | ECONOMIC | 02:29 AM EST

PARIS, Dec 13 (Reuters) - The European Central Bank is likely to further ease interest rates next year and is at ease with market projections for future rates, ECB policymaker Francois Villeroy de Galhau said on Friday.

"There will be further rate cuts," Villeroy told BFM business radio, adding "We are rather at ease with market projections on interest rates".

The European Central Bank cut interest rates for the fourth time this year on Thursday and kept the door open to more easing as the euro zone economy is dragged down by political instability at home and the threat of a fresh U.S. trade war. (Reporting by Dominique Vidalon; Editing by Benoit Van Overstraeten)

More Fixed Income News

Sterling falls after shock contraction in UK GDP BY Reuters |ECONOMIC 04:41 AM EST
GLOBAL MARKETS-Asian shares weaken, dollar rises on U.S. Treasury sell-off BY Reuters |TREASURY 04:06 AM EST
FOREX-Dollar set for best week in a month on cautious Fed outlook BY Reuters |ECONOMIC 03:50 AM EST
GRAPHIC-Take Five: The last mile BY Reuters |ECONOMIC 03:14 AM EST

All Fixed Income News

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.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article