The European Central Bank's governing council, Villeroy, supports a September interest rate cut, calling it a reasonable and sensible move

Mr. Villeroy, the ECB's governor, backed a cut in interest rates next month after data showed a marked slowdown in inflation in August. He said the central bank should anticipate future progress in taming inflation. He expected French inflation to remain at its 2 per cent target through the first half of 2025 and eurozone inflation to remain at its 2 per cent target through the second half of next year. "In my opinion, we should act at our meeting on September 12," Mr. Villeroy said. "It would be reasonable and sensible to decide to cut rates again." It was one of the clearest commitments to cut rates at the next meeting. Other officials hinted that a rate cut was increasingly likely. Earlier, data released by the European Union's statistical office showed that consumer prices rose 2.2% year-on-year in August, significantly lower than the 2.6% in July.