(Bloomberg) -- There’s broad agreement at the European Central Bank to begin lowering interest rates in the spring as the battle against inflation is being won, according to Governing Council member Francois Villeroy de Galhau.

The risk of waiting too long before loosening monetary policy and unduly hurting the economy is now “at least equal” to acting too soon and letting inflation rebound, the Bank of France chief told French newspaper Le Figaro.

Officials can move independently to their counterparts at the Federal Reserve, and there’ll be ample room to adjust the pace of easing as needed once the process starts, he said.

“Since our Governing Council meeting last week, there’s a very broad agreement to cut rates in the spring, bearing in mind that spring lasts until June 21,” Villeroy said.

The ECB has policy decisions scheduled for April 11 and June 6, with the vast majority of Villeroy’s colleagues indicating the latter meeting will likely see the deposit rate start to be lowered from its current record of 4%.

Speaking earlier Tuesday, Austria’s Robert Holzmann said an April move may be premature, with June’s gathering coinciding with the release of the ECB’s annual economic forecasts and therefore offering more assurance that inflation is returning safely to 2%.

That’s a timetable that President Christine Lagarde has also signaled strongly. 

Villeroy’s comments came as the Bank of France lowered its 2024 projection for underlying price gains — a measure that excludes food and energy — to 2.4% from 2.8% in December.

The central bank said growth in manufactured-goods prices was weaker than expected in recent months, while the slowdown in wages at the end of 2023 was more pronounced. 

It also said the latest figures on annual pay negotiations indicate a moderation in wage increases. It now expects average salaries to rise 3.2% in 2024 instead of 4.1%, as it predicted in December.

“We’re winning the battle against inflation,” Villeroy said in his Le Figaro interview.

The Bank of France’s new economic-growth forecasts for this year were little changed from three months ago. After revisions showed weaker growth at end-2023, it trimmed its projection for 2024 to expansion of 0.8% from 0.9%. 

It expects an acceleration to 1.5% next year and 1.7% in 2026 as investment recovers thanks to looser financing conditions.

Separately, the Bank of France’s monthly business survey showed little acceleration in activity is expected in the short term. Based on the responses of 8,500 firms and other recent data, the central bank now expects first-quarter growth of about 0.2%. 

“At the start of 2024, activity is slower, but it’s resisting,” Villeroy said. “It’s now confirmed: France will avoid recession.”

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