ECB Council Member Simkus Comments – Rate Cut Needed in April
“25 bps rate cut [in Eurozone] is needed in April” commented Gediminas Simkus from the Governing Council of the European Central Bank (ECB) for Econostream.
The central banker joined the dovish chorus within the ECB, which is growing amid concerns about the negative effects of American retaliatory tariffs and the further escalation of the trade war. According to Simkus, tariffs pose both a recessionary and disinflationary risk in the long term.
Before the announcement of the 20% retaliatory tariffs by Donald Trump, the OECD revised its GDP growth forecast for the Eurozone down to 1%, while UBS’s forecast was revised today from 0.7% to 0.5%.
Source: xStation5
Markets are virtually sure about next week’s cut. Source: Bloomberg Finance L.P.
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