ECB’s Šimkus: ‘Way Too Early’ to Celebrate Victory Over Inflation

3 October 2023

By David Barwick – VILNIUS (Econostream) – European Central Bank Governing Council member Gediminas Šimkus on Tuesday said that it remained much too soon to celebrate victory over inflation.

In remarks to open a conference of the Bank of Lithuania, which he heads, Šimkus said, ‘Inflation has many heads and we need to chop off all.’

‘Despite recent positive news on the inflation front, celebrating victory would be way too early’, he said.

The environment was very unstable, he said, citing in particular the Russian war of aggression.

‘In short, inflation is on the way down, but it still faces many important lines of resistance’, he said. The situation ‘calls for a consistent and strategic patience.’