The European Central Bank will need to make further reductions to interest rates this year and next, following an initial move in June, according to Governing Council member Francois Villeroy de Galhau.

The Bank of France chief said the time has come to ease policy since there’s “no serious evidence” behind the fear that the last mile of bringing inflation back toward 2% is more difficult. He also said there are no signs of a wage-price spiral, with average compensation per employee slowing markedly.

“We should, barring major shocks or surprises, decide on a first rate cut at our next meeting on June 6,” he told the Economic Club of New York. 

READ MORE: ECB to Cut More in 2024 and 2025 After June, Villeroy Says