ECB’s Šimkus: Cannot Rule out Another Cut After June; Could Be in July, September or December

9 May 2025

ECB’s Šimkus: Cannot Rule out Another Cut After June; Could Be in July, September or December
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 said on Friday that he could not rule out another interest rate cut after the June meeting, but that its timing was open.

In an interview with Bloomberg TV, Šimkus, who heads the Bank of Lithuania, said that ‘it’s obvious that for me the June decision is quite clear, I think another cut in June is needed.’

However, Šimkus said he could not ‘reject the chances that there might be another cut after June’, whether it be in July, September or even December.

Once the ECB lowered rates to 2%, which according to Šimkus was to be considered neutral territory, easing should be slower as rates would be moving into an accommodative stance, he said.

‘We are not late, we are nowhere late’, he said. ‘We can take our time to see how the things are evolving.’

Inflation could be projected to be only ‘marginally’ below 2% in 2026 or 2027 in the June projections, according to Šimkus.

‘We have to be prudent’, he added. ‘This is not the end of the world.’

 

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