ECB’s Simkus urges rate pause amid US tariff policy uncertainty

Published 12/06/2025, 09:50
ECB’s Simkus urges rate pause amid US tariff policy uncertainty

Investing.com -- European Central Bank Governing Council member Gediminas Simkus called for a pause in interest-rate moves, citing "very big uncertainty" over US tariff policy.

The Lithuanian central bank chief said Thursday in Vilnius that after eight reductions, "we’ve arrived at the neutral level — it’s now important to maintain the freedom of potential decision, not to commit to one direction or another."

Simkus pointed to unclear economic conditions, specifically mentioning uncertainty around US decisions expected on July 9.

"I believe it’s important to take a pause and to look at where we’re moving systemically," Simkus said. He added that he doesn’t "reject a possibility of another rate cut this year" due to seeing "an increased risk that inflation may be lower than the medium-term target."

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