ECB’s Simkus sees room for two more rate cuts as trade tensions drag on growth

Gediminas Simkus from the ECB signals potential for two additional interest rate cuts in 2025 due to economic pressures. Current financial conditions suggest further easing is possible without destabilizing the economy.

US tariffs and a robust euro are negatively affecting European exports and contributing to disinflation. The IMF has cut its GDP growth forecasts, highlighting softer recovery in the Eurozone.

Simkus emphasizes that the ECB will not delay action based on US trade talks. Monitoring economic indicators closely, the ECB is prepared to adjust rates as necessary, with a cautious approach to future policy changes.