Central Banks
ECB Could Make Back-to-Back Summer Rate Cuts, Simkus Says
- Lithuanian central-bank head speaks in interview in Washington
- He reiterates call for three or four rate reductions in 2024
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The European Central Bank could lower borrowing costs in both June and July, should disinflation in the euro zone be stronger than anticipated, Governing Council member Gediminas Simkus said.
The Lithuanian official said Europe can afford a “less restrictive monetary-policy stance” when the ECB meets in seven weeks’ time. But he said that initial reduction in the deposit rate — currently at a record-high 4% — is just part of a “series” of steps.