ECB’s Šimkus: There Might Be a Need to Cut in December

30 September 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Gediminas Šimkus said on Tuesday that the ECB might need to cut interest rates in December.

In an interview with Politico, Šimkus, who heads the Bank of Lithuania, said that the ECB “should remain open to all options” and that a cut in December might be necessary.

Keeping interest rates unchanged over a number of meetings did not imply that the easing cycle was over, he said.

He said upside risks to inflation “may or may not materialize,” but described downward pressures as already evident.

“The way I see it is that the risk of undershooting is somewhat higher than inflation remaining at 2% or higher,” he said.

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