ECB Governing Council member Gediminas Simkus said today, “In my view, if there’s no new staggering data, current restrictive levels are sufficient,” to steer inflation back to target.
Highlighting the bank’s current approach, Simkus clarified, “There is and there was no need to raise rates at this point.” But, “Will we need this in the future? We still have to wait and see. I’m hopeful this won’t be needed.”
Addressing the speculation around potential rate cuts, Simkus was clear in his stance. “Inflation is still high, too high. Any talk about cuts is premature. We need strategic patience to keep rates at restrictive levels,” he asserted.
Dispelling any immediate expectations of a rate reduction, he added, “I’d be highly surprised to see a rate cut in the first half. I don’t think so.”
![Pinterest](https://pinterest.com/pin/create/button/?url=https://www.actionforex.com/live-comments/525222-ecbs-simkus-current-restrictive-rates-sufficient-talk-about-cuts-premature/&media=https://www.actionforex.com/wp-content/uploads/2018/04/f-ecb13.jpg&description=ECB Governing Council member Gediminas Simkus said today, "In my view, if there's no new staggering data, current restrictive levels are sufficient," to steer inflation back to target.Highlighting the bank's current approach, Simkus clarified, "There is and there was no need to raise rates at this point." But, "Will we need this in the future? We still have to wait and see. I'm hopeful this won't be needed."Addressing the speculation around potential rate cuts, Simkus was clear in his stance. "Inflation is still high, too high. Any talk about cuts is premature. We need strategic patience to keep rates at restrictive levels," he asserted.Dispelling any immediate expectations of a rate reduction, he added, "I'd be highly surprised to see a rate cut in the first half. I don't think so."){kind=link}