ECB Member Calls for Immediate Rate Adjustment

In a significant statement, European Central Bank (ECB) Governing Council member Gediminas Simkus emphasized the necessity of a 25 basis point interest rate cut at the upcoming April meeting. Highlighting the need for a shift to a less restrictive monetary stance, Simkus pointed to the recent U.S. tariff announcement as a key factor influencing this decision.

Simkus Rules Out Larger Cuts

Addressing speculation, Simkus firmly dismissed the possibility of a 50-point rate decrease, labeling such a move as excessive. He further elaborated on the medium-term outlook, suggesting that escalating trade tensions could lead to deflationary pressures. According to Simkus, the ECB is more likely to either undershoot or meet its targets rather than overshoot them.