European Central Bank (ECB) Governing Council member and head of Lithuania’s central bank, Gediminas Simkus, said in an interview in Vilnius on Wednesday that current monetary policy settings remain appropriate as inflation is hovering close to the ECB’s 2% target.
Additional remarks
Simkus noted that with inflation essentially at target, there is no need to change interest rates at this stage. He added that recent data shows inflation and GDP risks are broadly balanced, suggesting the current policy stance is well-calibrated. According to him, the December rate decision “won’t be difficult,” implying policymakers may be aligned in their outlook.
Market reaction
Simkus’s comments mirror the tone expressed by several ECB officials in recent weeks, resulting in limited market impact. At the time of writing, EUR/USD is up 0.12% near 1.1640, supported partly by mild US Dollar (USD) softness ahead of the Federal Reserve’s (Fed) upcoming policy announcement.
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