ECB’s Šimkus: There Is No Need for Moves Bigger Than 25BP

21 October 2024

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Gediminas Šimkus said on Monday that larger interest rate moves than the current 25bp steps were not necessary.

In an encounter with journalists in Vilnius, Šimkus, who heads the Bank of Lithuania, said that he did not ‘see any need for interest rate cuts bigger than 25bp.’

The persistence of disinflation would determine where monetary easing ended, he indicated.

‘If the disinflation processes get entrenched... it's possible that rates will be lower than the natural level’, he said.

Šimkus said that he did not know what the decision of the ECB would be in the December meeting, but that the direction of rates overall was ‘clear’.