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ECB’s Šimkus: Medium-Term Projections Aligned With Our Inflation Target

31 October 2025

ECB’s Šimkus: Medium-Term Projections Aligned With Our Inflation Target
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 David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Gediminas Šimkus on Friday highlighted the alignment of the ECB's projections with the inflation target as the reason not to change interest rates.

Šimkus, who heads the Bank of Lithuania, told Lithuanian public service broadcaster LRT that the ECB left interest rates unchanged on Thursday primarily because “[i]f we look at the medium term, the projected indicators are aligned with the 2% target.”

“Markets are currently not expecting a significant change,” he said, declining to offer a monetary policy prediction of his own.