Gediminas Simkus, a member of the European Central Bank’s Governing Council, stated that the central bank should not limit its policy options due to ongoing concerns about inflation risks.
He said on Friday, “The overall situation indicates that the inflation risk is quite substantial: geopolitical tensions, tariff uncertainties, and trade tensions,” and emphasized that “the significant appreciation of the euro against the dollar will have a negative impact on price growth.”
In an interview with Lithuanian radio, he stated, “When considering the future, given all the uncertainties, it is important to keep options open for all choices.”
When asked about the next direction for interest rates, the Governor of the Bank of Lithuania declined to comment.