European Central Bank committee: The European Central Bank should maintain a consistent pace of interest rate cuts

On December 19, Simkus, a member of the European Central Bank Management Committee, said that as inflation is increasingly under control, the European Central Bank should continue to drop borrowing costs at the current rate. Simkus said the downside direction for monetary policy is clear. He warned that while price risks look balanced in 2025, downside risks could be in 2026. "When it comes to future decisions, they will be determined by the data available at that time. But the best-case scenario is a rhythmic and sustained downward revision towards the neutral Intrerest Rate. "Analysts expect Europe's Central Bank to cut the deposit Intrerest Rate to 2% from the current 3%. Market investors are expecting a slightly more aggressive path (closing at 1.75%). Simkus said the Intrerest Rate will be near the bottom of the 1.7%-2.5% range, which many consider neutral.