TechFlow, May 9 — According to Jinshi Data, European Central Bank (ECB) Governing Council member Simkus said that as the eurozone economy has not yet felt the full impact of U.S. tariffs, inflation is expected to continue slowing, but the ECB must further cut interest rates. He stated that while economic activity initially performed well, recent geopolitical trends, including U.S. President Trump's trade threats, are bad news. At the same time, he sees "clear disinflationary forces" at work.
He said, "For me, the decision in June is very clear—we need another rate cut. There is a possibility of further cuts after June," although the timing remains unclear. The ECB has cut interest rates seven times since last June, and officials have indicated they are ready to take additional measures as U.S. tariffs threaten economic growth.
