ECB's Villeroy: there is still gradual margin for rate cuts

PARIS, April 28 (Reuters) - U.S. President Donald Trump's tariff threats are creating uncertainty around the world but there is still a margin for further interest rate cuts in Europe as inflation in the euro-zone heads lower, European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Monday.

Speaking to RTL radio, Villeroy - who is also head of the Bank of France - said: "We still have a gradual margin for rates cuts."

ECB policymakers are becoming increasingly confident about cutting interest rates in June as inflation continues its march lower, but there is little to no appetite for a big move, six sources told Reuters last week.

The ECB trimmed its benchmark rate to 2.25% earlier this month.