2024-04-15 10:06:40
“I think so (interest rates will be cut by 25 basis points in June – ELTA). Because there is no immediate need to respond on a larger scale. There are conditions for inflation to return to 2 percent. the target level already next year to a less restrictive monetary policy”, G. Šimkus told reporters on Monday.
He assured that he sees a high probability that interest rates will be reduced more than 3 times this year.
“Seeing the development of the economy with more than 50% in all probability, I think there will be more (reductions than 3 – ELTA)”, said the chairman of the LB board.
G. Šimkus said that the conflict between Iran and Israel should not affect the context of lowering interest rates.
“I thought about the escalation of the Iran-Israel conflict. I looked at oil prices, they went up and down again. However, these are not the two countries that lead to economic tectonic breaks”, explained the chairman of the LB board.
“I don’t think that the time between now and June is such that something very important and unexpected for the economic trajectory will happen,” he said.
Finally, G. Šimkus assured that he sees a “non-zero probability” that interest rates will be lowered in July as well.
With European Central Bank policymakers closely monitoring steadily declining inflation, the cost of loans remained unchanged on Thursday at 4.5 percent.
Many economists expected such a decision – the fifth in a row since last October. The ECB’s reference deposit rate, which has currently reached a record level of four percent, was also unchanged.
The interest rate of the main refinancing operations and the interest rates using marginal borrowing and deposit options will not change and are 4.5, 4.75 and 4 percent, respectively.
2024-04-15 10:06:40