ECB Governing Council member Simkus said that since the Eurozone economy has yet to feel the full impact of US tariffs, inflation is expected to continue to slow, but the ECB must further reduce interest rates. He said that although economic activity initially performed well, recent geopolitical trends, including US President Trump's trade threats, are all bad news. At the same time, he saw “clear anti-inflationary forces” at work. He said, “For me, the June decision is very clear, and we need to cut interest rates again.” He said, “It is possible that interest rates will be cut again after June,” although the timing is unclear. The ECB has cut interest rates seven times since June last year. Officials have said they are ready to take more measures as US tariffs threaten economic growth.

ECB Governing Council member Simkus said that since the Eurozone economy has yet to feel the full impact of US tariffs, inflation is expected to continue to slow, but the ECB must further reduce interest rates. He said that although economic activity initially performed well, recent geopolitical trends, including US President Trump's trade threats, are all bad news. At the same time, he saw “clear anti-inflationary forces” at work. He said, “For me, the June decision is very clear, and we need to cut interest rates again.” He said, “It is possible that interest rates will be cut again after June,” although the timing is unclear. The ECB has cut interest rates seven times since June last year. Officials have said they are ready to take more measures as US tariffs threaten economic growth.