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ECB’s Simkus signals higher odds of a near-term rate hike

ECB Governing Council member Gediminas Simkus said the inflation outlook remains above target for a long time, while he ruled out second-round effects and pointed to September as the next data checkpoint.

Reported · Written up by our desk · Central Banks

FXStreet reports that ECB Governing Council member and head of Lithuania’s central bank Gediminas Simkus said the odds of an interest rate hike in the near term are higher than keeping policy unchanged.

Simkus also dismissed concerns about second-round effects from higher inflation, arguing there is “no value in rushing” a decision ahead of additional inflation data.

He added that inflation is expected to stay above the ECB’s around 2% target for a long time, and that in September the ECB will have more inflation information to consider.

After the comments, EUR/USD was indicated to be about 0.1% higher, trading near 1.1386 in European hours.

Latest closeEUR/USD 1.138 ▼0.2%

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