ECB’s Šimkus: Expect a 25 bps decrease in March

FX

European Central Bank (ECB) Governing Council member Gediminas Šimkus said on Monday that he sees another 25 basis points (bps) interest rate cut in March.

Further comments

Expect a couple more rate cuts after March as well.

We can allow for a looser monetary policy.

We still have space left before reaching neutral rate.

Trump tariffs increase uncertainty.

Trump’s tarrifs and possible action against the EU “is not good news neither for economy nor for inflation.

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