ECB council member suggests no year-end rate hike unless surprising data emerges

Gediminas Simkus, a member of the European Central Bank (ECB) Governing Council and a Lithuanian authority, expressed skepticism towards a rate reduction in the first half of 2024, calling for strategic patience to maintain rates at their current restrictive levels. His comments came amidst enduring high inflation and uncertainty, emphasizing the need for decisions based on data at each meeting.

On Monday, Simkus suggested that a rate hike might not be necessary at the year-end ECB meeting unless unexpected economic data emerges. He considers the existing restrictive levels adequate and does not anticipate a future rate surge. Simkus views the current inflation as overly high and labels discussions on rate cuts as premature.

Simkus's stance indicates a cautious approach by the ECB towards monetary policy adjustments in light of ongoing economic uncertainties. This approach underscores the importance of data-driven decision-making in shaping monetary policy, particularly in an environment marked by high inflation.

Source : Economy News by Investing.com / October 30, 2023