ECB Villeroy: Bank will quite probably cut rates in October

European Central Bank (ECB) Governing Council policymaker and French central bank governor François Villeroy de Galhau said on Sunday that the central bank might cut the interest rate in the October meeting as economic growth is weak.  

Key quotes

ECB will probably cut interest rates on October 17. 
Economic growth is weak, bringing the risk that inflation will undershoot its 2% target. 
In the last two years, our main risk was to overshoot our 2% target, now we must also pay attention to the opposite risk, of undershooting our objective due to weak growth and a restrictive monetary policy for too long.
ECB should be back at the "neutral" rate sometime in 2025. 
If we are next year sustainably at 2% inflation, and with still a sluggish growth outlook in Europe, there won't be any reason for our monetary policy to remain restrictive, and our rates to be above the neutral rate of interest. 

Market reaction 

At the time of press, the EUR/USD pair was up 0.02% on the day at 1.0972.