In Vilnius on Feb 3, European Central Bank policymaker Gediminas Simkus indicated that he anticipated an interest rate reduction in March and anticipated "a couple more" cuts in the subsequent months.
Simkus, the Lithuanian central bank governor, implied that more interest rate decreases were forthcoming as the ECB was still distant from the neutral rate that doesn't overly boost or hinder the economy.
I don’t think that the decrease in March will be the last one," he informed reporters. "I think that there will be a couple more decreases, after March. I don’t want to tie this to April or any other month, I think this will be done according to information.
Regarding the potential U.S. tariffs on EU imports, Simkus referred to it as not good news for economic growth or inflation, bringing about a lot of uncertainty. However, he refrained from making projections about the impacts, highlighting that such effects would rely on the specifics of the tariff and the EU's response.