ECB’s Šimkus: ‘Important to Take a Pause’, But Can't Dismiss Possible Further Easing in 2025

12 June 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Gediminas Šimkus said on Thursday that a pause in the ECB’s easing cycle was justified, but he did not rule out another interest rate cut in 2025.

At a press conference in Vilnius, Šimkus, who heads the Bank of Lithuania, said that ‘it’s important to take a pause an to look at where we’re moving systemically.’

Šimkus did not dismiss the possibility of another rate cut this year due to ‘an increased risk that inflation may be lower than the medium-term target.’

The ECB was now at a neutral level, and it was ‘important to maintain freedom of potential decision, not to commit to one direction or another’, he said.

Related articles:

• ECB’s Šimkus: Policy Rates Are Currently at Neutral
• ECB’s Šimkus: Cannot Rule out Another Cut After June, Could Be in July, September or December
• ECB’s Šimkus: Would Be Appropriate to Cut by 25BP in June