ECB’s Simkus: Likelihood Of October Rate Cut "Very Small"

The likelihood of the European Central Bank (ECB) lowering interest rates again next month is minimal, according to Governing Council member Gediminas Simkus, as reported by Milda Seputyte for Bloomberg News.

Simkus questioned as well whether or not there is a need for a rate cut.

While officials aim to remain flexible and continue making data-driven decisions, another reduction in the deposit rate so soon after this month's quarter-point cut would be “difficult,” the Lithuanian official said.

“The likelihood of an October reduction is very small,” Simkus told reporters in Vilnius. “It’s questionable if there’s even a need for this. The euro-area economy is developing according to our forecasts, which has been the case for the past two years.”