European Central Bank (ECB) Governing Council member François Villeroy de Galhau stated on Monday that it is "highly likely" the ECB will cut interest rates at its next meeting later this month.

The head of the French central bank said in an interview that inflation in September has fallen below the ECB's 2% target, and by 2025, the core indicator measuring price increases should gradually return to levels close to 2%.

He also stated that market expectations for inflation in 2025 are below 1.8%, even lower than the ECB's forecasts.

"All of this means that the balance of risks is changing," he said. "Over the past two years, our main risk was exceeding the 2% target. Now we must also be aware of the opposite risk, which is falling below our target due to weak growth and the continuation of restrictive monetary policy for too long."

In recent weeks, the head of the French central bank has remained silent on ECB policy, during which time expectations for a rate cut decision on October 17th have shifted from near zero to almost certain.

After the ECB last reduced borrowing costs on September 12th, Villeroy immediately stated that policymakers should continue to adopt a gradual approach, but be careful not to fall below the 2% inflation target or exceed it.

In an interview published on Monday, Villeroy said: "I strongly advocated at the last Governing Council meeting to keep full discretion in October, which was correct. I would not change my mind today, abandon a pragmatic approach, and meet again and again."

Since the September meeting, data has shown that eurozone inflation has fallen below 2% for the first time in over three years, and surveys indicate a deterioration in economic activity. Investors currently estimate that the likelihood of a rate cut in October is about 90%.

When asked whether the ECB would more actively ease policy, Villeroy said that if the central bank achieves its target, there should be no reason to keep interest rates above a neutral level. Neutral is an undefined theoretical level that neither stimulates nor hinders the economy.

He said: "If our inflation rate remains at 2% next year, and Europe's growth prospects remain sluggish, then we have no reason to continue with restrictive monetary policy."Villeroy淡化了因中东紧张局势而导致油价飙升的通胀风险。

"\( We should keep a close eye on this very unstable situation, \)" he said. "\( But as long as this is temporary and does not spill over into core inflation, the rise in oil prices does not necessarily have to change our monetary policy. \)"