ECB’s Simkus Says Two More Cuts Possible as Trade Hurts Economy

ECB’s Simkus Says Two More Cuts Possible as Trade Hurts Economy

The European Central Bank may have to lower interest rates further as US tariffs weigh on economic growth and inflation continues to slow, according to Governing Council member Gediminas Simkus.

ECB’s Simkus sees room for two more rate cuts as trade tensions drag on growth

The European Central Bank (ECB) could lower interest rates at least two more times this year, according to Governing Council member Gediminas Simkus. Simkus reported on Friday at the Spring Meetings of the International Monetary Fund in Washington that global trade weakness, largely caused by new US tariffs, is bringing a new threat to Europe’s economy. He also noted that inflation was already declining and could slow down even further in the co…

The European Central Bank may have to lower interest rates further, as US tariffs weigh on economic growth and inflation continues to slow down, according to Governing Council member Gediminas Simkus.See more: ECB continues with its cutback in the face of fear of Trump tariffsAfter seven reductions since last June, the ECB's deposit rate remains close to the top end of a range where it neither restricts nor stimulates activity, said the head of …

According to Gediminas Simkus, a member of the Governing Council of the European Central Bank, the European Central Bank should cut interest rates further as US tariffs are slowing economic growth and inflation continues to slow, Bloomberg reports.