The decisions we make at the ECB, with Christine Lagarde, are independent of those made by the Fed, says Villeroy de Galhau.
According to the French ECB top executive, the independence from the Fed has already been confirmed during the year, where the ECB initiated a series of interest rate cuts as early as June, three months before the first interest rate cut from the Fed.
When inflation falls, we will be able to continue cutting interest rates, says Villeroy de Galhau.
He expects that the protectionism that Donald Trump is expected to drive through as president will push up inflation in the US and hit growth in other countries.
The Fed has cut the key interest rate by a total of 0.75 percentage points at its two latest meetings. At the December interest rate meeting, a further cut is expected, but then the Fed is expected to take a pause.
The ECB has cut the key interest rate at three consecutive meetings and is expected to continue cutting at the next four meetings as well. What the ECB does with its key interest rates has a significant impact on the Swedish Central Bank's scope for interest rate adjustments.
