ECB’s Šimkus: Expect 25BP Rate Hikes in June and July; Unclear if This Will Continue in September

30 May 2023

By David Barwick – FRANKFURT (Econostream) – The European Central Bank is likely to hike rates by 25bp in June and July, after which the outlook is less certain, according to ECB Governing Council member Gediminas Šimkus.

Speaking at a press conference in Vilnius, Šimkus, who is Chairman of the Board of the Bank of Lithuania, said, ‘I think we will see a 25bp rate hike each in June and July. Will this continue in September? Let's take our time, because there is still a long time before that period and there will be at least two more rounds of forecasts - in June, September - and of course a lot of data on the economy, which at the moment I would say is sometimes conflicting.’

‘Inflation is too high for too long and over the next couple of ECB Governing Council meetings, I think we should see further increases in key interest rates’, he said. ‘Not as fast as it used to be - admittedly 75 or 50bp increases are unconventional, but they should continue to increase.’