ECB’s Šimkus: Future Inflation Deviations from 2% Are Marginal, Not Fundamental

3 November 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Gediminas Šimkus on Monday suggested that the expected deviations of inflation in the future were negligible.

Šimkus, who heads the Bank of Lithuania, said that the inflation and growth projections to be presented at the ECB’s December meeting would be key for his policy decisions.

“This is the best attempt to assess current information, knowledge, and market development into the future,” he added.

Šimkus emphasized that the upcoming forecasts would be “very important,” particularly the 2028 projections.

“Estimates for the coming months and inflation forecasts for next year indicate that we will see a decrease in inflation,” he said, adding that various long-term indicators were consistent with it remaining close to 2%.

“Then it is very important to understand how it reflects on the future, how far it would have deviated from the target inflation,” he said.

Šimkus observed that inflation was currently hovering around 2% and likely to remain near that level, with any deviations being “marginal differences” rather than “fundamental” ones. This, he said, supported the ECB’s unanimous decision to keep interest rates unchanged at last week's Governing Council meeting.

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