The June rate cut by the European Central Bank should not be delayed by Middle East tensions

French central bank chief Francois Villeroy de Galhau says tensions in Middle East unlikely to drive up energy prices. ECB will start cutting interest rates in June, he says. "Barring surprises, there is no need to wait much longer", he says in Les Echos.

ECB's Olli Rehn says Geopolitics pose Biggest Risk to rate cuts. Slower inflation has opened the door for the European Central Bank to start lowering interest rates this summer, he says. Rehn said geopolitics could still derail such plans, though.

The European Central Bank held the line on interest rates but officials leaned even more toward a mid-year cut should inflation continue to cool. The ECB is expected to cut interest rates if inflation continues to cool in the coming months. The European central bank is leaning more toward cutting rates.

European stock markets will likely end the week in the red for the second straight week due to surging bond yields. European Central Bank’s hint for a June rate cut is expected to hit the market. European stock market will likely finish the week red for a second straight straight week.

Governing Council member Francois Villeroy de Galhau warns of economic risks of keeping interest rates high for too long. ECB should cut rates at one of its next two meetings, he says. ECB can’t ignore the economic risk of keeping rates high too long, he adds.