ECB‘s Šimkus: Central Scenario is Three Interest Rate Cuts This Year

19 April 2024

By Aurėja Bobelytė – VILNIUS (Econostream) – European Central Bank Governing Council member Gediminas Šimkus said Friday that his baseline was for three rate cuts this year.

In an interview with CNBC, Šimkus, who heads the Bank of Lithuania, said, ‘I believe that if we don’t have any major surprises and the economy develops the way it is projected, we could see several cuts in the pipeline. In my baseline it’s three.’

‘[T]he way I see the development of interest rates, it’s not only about one cut in June and then we are done. No, if you consider the effect of a less restrictive monetary policy environment, it’s about an overall cut in several periods’, he said.