(Bloomberg) -- European Central Bank Governing Council member Gediminas Simkus said he agrees with investor wagers on two more reductions in interest rates this year.
The first could come at the next monetary-policy meeting, the Lithuanian official told reporters in Vilnius. The disinflation trend is “clear,” he said, while warning that rises in services prices remain rapid.
“If there are no surprises or black swans and inflation converges as expected, further monetary-policy easing will undoubtedly be on the table in the next meetings,” Simkus said Friday.
“I have no doubt that the issue of cutting will be put up for discussion in September,” he said, though stressed that it’s unclear whether a move will materialize since the ECB must still assess new data over the coming weeks.
Simkus also said:
- “It’s important that the inflation trend will be bumpy this entire year. We’ll see bouncing up and down but inflation should converge toward the target in the second half next year”
- No reason for rate cuts to be bigger than 25 basis points
- Economic expansion likely to be weaker than forecast
- Read More: ECB Officials Consider If Only One More Cut Feasible in 2024
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