ECB’s Šimkus: ‘I Don’t Think a Rate Cut In March Will Be the Last One’

3 February 2025

ECB’s Šimkus: ‘I Don’t Think a Rate Cut In March Will Be the Last One’
Gediminas Šimkus, governor of the Bank of Lithuania, at the European Central Bank Forum on Central Banking in Sintra, Portugal on July 2, 2024. Photo by the ECB under CC BY-NC-ND 2.0.

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Gediminas Šimkus on Monday said that a potential ECB rate cut in March would not be the last one of the current easing cycle.

In remarks in Vilnius, Šimkus, who heads the Bank of Lithuania, said, ‘I don’t think that the decrease in March will be the last one.’

There will be ‘a couple more’ rate reductions beyond March, he said.

‘I don’t want to tie this to April or any other month, I think this will be done according to information’, he added.

Potential US tariffs on European goods were not ‘good news’ for the economy, but also not for inflation as it would generate high uncertainty, according to Šimkus.

 

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