ECB's Šimkus: 25 bps rate cut needed in April

European Central Bank (ECB) Governing Council member Gediminas Šimkus said on Tuesday that a“25 basis points (bps) rate cut is needed in April.”

Further comments

• US tariff announcement warrants more accomodative monetary policy.
• We need to move to a less restrictive policy stance.
• Worsening of trade tensions can be deflationary in the medium term.
• Policy is currently still more restrictive rather than neutral.
• Even with another cut, will still only be at the upper bound of neutral interval.
• US tariffs announcement much more disappointing that anticipated.
• Undershooting risk already up before April 2, must carefully monitor.
• In the medium term, undershooting or being at target is more probable than overshooting.
• In June, let's see what has changed since April, then decide whether to cut again.
• I see no need to talk about 50 bps. That would be too much. We are not behind the curve.