ECB's Simkus calls for rate cuts amid US tariff policy

Gediminas Simkus, a member of the Governing Council of the European Central Bank (ECB), expressed his support for an interest rate cut in April, citing the need to counter the negative effects of US President Donald Trump's trade policies. In his opinion, the tariffs imposed by the American leader are undermining business activity and consumer sentiment, creating disinflationary pressures on the eurozone economy.

Simkus emphasized the need for looser monetary policy to ensure that inflation moves closer to the target level. Despite six interest rate cuts since June last year, risks of a slowdown in eurozone economic growth persist, driven by US protectionist measures. This situation is complicated by the region's GDP growth already facing threats from trade restrictions.

Other ECB officials expressed a cautious stance on the regulator's next steps. Bundesbank President Joachim Nagel noted that decisions will be made on the basis of actual data. ECB Vice President Luis de Guindos advised against jumping to conclusions and stressed the need to assess the long-term impact of trade tensions.