European Central Bank committee: Inflation risks are reducing and we will react swiftly based on data.

European Central Bank (ECB) executive board member and Governor of the Bank of France, Francois Villeroy de Galhau, stated that inflation risks seem to have weakened, and the ECB is prepared to quickly respond to new data. In an interview on Friday, he said that the ECB must be prepared for various possibilities, and policy makers will wait for more data before deciding whether to further adjust interest rates at the next meeting in early June. Francois Villeroy de Galhau said, "There is a phrase that I really like and have been using since last year, which is 'agile pragmatism' - it worked in March, and it worked with yesterday's decision as well." "We are ready to react quickly based on the latest information." He added that due to the strengthening of the euro, falling raw material prices, and imports from other countries such as China, "current inflation risks seem relatively low, even with the possibility of downward inflation risks." The ECB cut interest rates again on Thursday, marking the seventh rate cut since June last year, citing the possibility of global trade tensions disrupting the eurozone's economic recovery. The term "restrictive" in describing monetary policy in the ECB's statement related to the monetary policy stance was removed. The market has increased its bets on further rate cuts by the ECB. ECB executive board member and Governor of the Bank of Estonia, Madis Muller, stated in a declaration that "we can say more clearly that rates no longer constrain economic activity. The economic outlook in the euro area now depends on the success of European companies in adapting and competing in the evolving global markets." He added that the economic growth prospects in the euro area are more challenging than previously expected. ECB President Lagarde stated at a press conference after the rate decision that the downside risks to economic growth have increased. However, she emphasized that the full consequences of US tariffs will take some time to materialize. As inflation continues to fall back towards the ECB's 2% target, there are concerns that US tariffs could hinder the eurozone's economic recovery and drag inflation below target levels. Francois Villeroy de Galhau said, "We are in a turbulent sea." He also emphasized that the ECB needs to have a very clear understanding of its course and position.