France's finance minister, Bruno Le Maire has said falling interest rates will boost economic momentum within the next few months, following a period of stagnation.

Le Maire said a forecast loosening of monetary policy at the European Central Bank will result in substantial change within the business environment.

"Interest rates should fall in the coming months and that means you can borrow more easily, invest more easily and citizens will buy more. That will give us more economic momentum at the end of 2024 and really powerful economic momentum in 2025 and 2026," the finance minister stated.

Le Maire's remarks coincide with indications from ECB policymakers that they intend to initiate rate cuts starting in June. Data released earlier on Wednesday further solidified these prospects, revealing that inflation in the euro area decelerated more than initially forecast, Bloomberg reports.

Last week, the governor of France's central bank, Francois Villeroy de Galhau cautioned that waiting too long to ease policy would lead to unnecessary economic harm to Europe. 

Additionally, he mentioned the possibility of a rate cut as early as the ECB's meeting on 11th April.

Furthermore, the slowdown in economic growth in France has already led to fiscal challenges for the government, necessitating additional spending cuts due to disappointing tax revenues that have widened the budget deficit. The Finance Ministry is banking on an improvement in the economic situation to drive growth to 1% this year, the Bloomberg report goes on to add.

"Your economic situation and the economic situation of the country won't stop getting better in the coming months and years," Le Maire stated.