Bloomberg (gated) carried comments from Gediminas Šimkus, Chairman of the Board of the Bank of Lithuania and European Central Bank Governing Council member (the monetary policy making board of the Bank).
Bloomberg is gated, but in brief:
ECB could lower interest rates at least two more times this year, citing:
- global trade weakness, largely caused by new US tariffs, is bringing a new threat to Europe’s economy
- inflation was declining and could slow down even further in the months ahead
- still room to ease policy without generating financial instability or overheating the economy
Simkus added that more negative surprises would be needed to move lower.
This article was written by Eamonn Sheridan at www.forexlive.com.